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Regulatory Issues Likely Reason Behind the Move

The crypto exchange announced on Thursday that Binance (BNB-X) intends to cease offering crypto debit cards in Latin America and the Middle East. Users of Binance crypto debit cards in these regions will have until September 21 to stop using the product. 

“The Binance Card will no longer be available to users in Latin America and the Middle East. The product, like most debit cards, has been utilized by Binance’s users to pay for basic daily expenses but in this case, the cards are funded with crypto assets.”

– Binance announced on Twitter.

According to the announcement, less than 1% of Binance users will be impacted by this move, while accounts in other global markets will not be affected. 

Although Binance did not officially disclose the reasons behind the decision, crypto and financial experts believe the move could be associated with the ongoing regulatory crackdown on the company. For instance, the UK payment processor Checkout.com recently cut ties with Binance due to these concerns. 

The largest crypto exchange has been sued by the US Securities and Exchange Commission in June and saw its application to enter Germany rejected by the country’s regulators. Meanwhile, French authorities are investigating Binance’s local arm over potential money laundering activities.

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