Recently, there’s been a significant development in the cryptocurrency space. Binance, a renowned cryptocurrency exchange, has announced its plan to temporarily halt its cryptocurrency debit card services in Latin America and the Middle East starting from September 21, 2023.
Similar to regular debit cards, Binance’s debit card was designed to facilitate daily transactions and purchases. However, this card is unique as it’s funded with cryptocurrencies instead of traditional fiat currencies. Binance introduced this type of card back in April 2020 with the aim of promoting global adoption of cryptocurrencies. The exchange has stated that their cryptocurrency card services are available in 35 countries, serving more than 90 million users.
However, according to a recent post by Binance’s Help Center on August 24, the exchange expressed that their latest decision will have minor impacts on the South American and Middle Eastern markets. Binance stated that less than 1% of their customers were using their cryptocurrency debit cards. While the exchange hasn’t provided a specific reason for discontinuing their card services in these designated regions, they did mention that all user accounts will continue to function normally. They also encouraged affected users to transition to using their alternative payment platform, Binance Pay.
Interestingly, this move follows a series of controversial changes made by the world’s largest cryptocurrency exchange. For instance, earlier this month, the Seychelles-based company shut down Binance Connect, a single-entry cryptocurrency platform, due to the termination of supporting card services on this platform.
However, reports indicate that the exchange is shifting its focus to its core operations. On August 22, Bloomberg reported that Binance.US has partnered with MoonPay, a payment startup, to address payment issues in the United States following challenges with some banking partners.
In addition to the above information, Binance has also announced other new steps related to its trading platform. In a post on their official website on August 24, Binance revealed that the company will discontinue its initiative of offering fee-free Bitcoin trading for the BTC/TUSD trading pair. Instead, Binance plans to introduce recipient fees for customers participating in the BTC/TUSD trading pair. Notably, maker fees will still be waived. Starting from September 7, traders will need to pay recipient fees based on their VIP level.
The VIP level calculation considers various factors, including the trading volume in the BTC/TUSD trading pair, BNB discounts, referral discounts, and other fee adjustments.