Binance to Cease Card Services in Europe Amid Rising Alternatives

In a recent announcement, Binance, one of the world's leading cryptocurrency exchanges, has confirmed its plans to halt card services across Europe by December 20. This decision impacts the Binance Visa debit card service provided to users in the European Economic Area (EEA). The move is said to be influenced by the rise of alternative cryptocurrency card options in the market.

Introduced in September 2020, Binance's Visa card, powered by Swipe, permitted European users to utilize and transact using cryptocurrencies at over 60 million online and brick-and-mortar outlets. Unlike traditional debit cards that store fiat currencies, this card holds digital currencies, including bitcoin (BTC), BNB, and BUSD.

A Binance representative clarified that this service alteration will affect just around 1% of their global user base. Despite the card service discontinuation, regular Binance account functionalities remain uninterrupted. Visa representatives have yet to comment on this development.

Interestingly, this isn't Binance's first shift in card services. Earlier in July, Binance had already suspended new Visa card applications for the EEA. Moreover, in a separate move, Mastercard planned to end its card pilot program collaboration with Binance in Argentina, Brazil, Colombia, and Bahrain.

Binance further emphasized the availability of its Binance Pay option, which offers a seamless crypto payment solution to specific merchants. Yet, given the previous year's FTX debacle, many might gravitate towards new crypto card solutions not tethered to centralized exchanges.

Highlighting the backdrop of these decisions, Binance faced a lawsuit from the US Securities and Exchange Commission in June over allegations of mismanagement of customer assets and non-compliance with securities registrations. Similar allegations were made against another crypto exchange, Coinbase. Both entities have refuted these claims.

Meanwhile, in response to industry demands, non-custodial crypto cards, which prioritize fund security by eliminating third-party risks, have emerged. Firms like Wirex, Gnosis, and Suberra have launched these innovative cards. In contrast, Coinbase persists in extending its card services in both the European Union and the US. Crypto.com's recent announcement also spotlighted a promotional offer for new users of their Visa card.