- Binance is discontinuing its Visa debit card program in December 2023, impacting worldwide users who enjoyed spending crypto for everyday purchases.
- In an email, Binance cited that only around 1% of its users actually utilize the Visa debit card. Users must destroy their physical cards before the December deadline.
- The card allowed converting crypto to fiat to spend anywhere Visa is accepted, but faced regulatory issues in 2021 when the UK FCA halted the card. The discontinuation highlights regulatory uncertainty around using crypto for payments.
Binance recently announced that it will discontinue its Visa debit card program starting in December 2023. This impacts users worldwide who have enjoyed using the card to make crypto payments. However, only around 1% of Binance users actually utilize the card.
Announcement Sent to Binance Users
In an email sent to clients, Binance shared that the Binance Visa Debit card will no longer be available after December 2023. UAB Finansins paslaugos Contis, the card’s issuer, will cease being part of the debit card program.
The email instructed users to destroy their physical Binance Visa Debit cards before the December 20th deadline by cutting up the card. This ensures that the chip and magnetic stripe are destroyed. Users’ fiat and cryptocurrencies held in their Binance accounts will not be affected.
Reason Provided for Discontinuation
When asked about the reasoning behind ending the card program, a Binance spokesperson confirmed the news. They stated that only around 1% of Binance users actually use the Visa debit card to spend crypto for everyday purchases.
The spokesperson reiterated that Binance accounts will continue operating as usual. Users can still spend crypto using Binance Pay, a contactless payment solution designed by Binance.
Background on Binance Visa Debit Card
The Binance Visa Debit card allowed users to convert crypto assets like Bitcoin into fiat currency. This could then be spent anywhere Visa is accepted. The program was launched in 2020 and allowed users to earn up to 8% cashback on purchases.
However, there were some regulatory issues surrounding the card. In 2021, the Financial Conduct Authority in the UK ordered Binance to cease all regulated activities. This led to Binance halting debit card services for UK residents.
Despite this setback, the card continued operating in other regions until Binance’s recent announcement of its discontinuation. The phase-out highlights regulatory uncertainty still surrounding crypto’s use for payments.