Amid a shifting crypto landscape, Binance, the world's leading cryptocurrency exchange, finds itself entangled in a slew of legal challenges and regulatory investigations.
Notably, Binance currently faces allegations from the U.S. SEC and a probe from French authorities for mismanagement of customer funds and potential money laundering. The UK, Russia and other countries are also not left out of this finger-pointing narrative.
Become a Techloy member.
Join 20,000+ subscribers getting the latest business, career, and financial information in the technology industry across emerging markets globally.
Delivered to your inbox, every week(end). Unsubscribe anytime. Please check your junk email folder, if it doesn't arrive in your inbox.
As a ripple effect, Binance has been forced to shut down its business in multiple regions including Canada due to non-compliance with requisite regulatory standards. It has also lost some notable partnerships. This includes discontinued partnerships with UK credit card company, Checkout.com and Euro banking partner, Paysafe.
The latest development in this ongoing saga is its recent announcement in a post on X, formerly Twitter, that it is discontinuing its card services in the Middle East and Latin America.
The card service, introduced in Latin America (Argentina and Brazil) less than a year ago, allowed users to use their crypto assets to pay for everyday expenses like conventional debit cards.
According to the crypto company, the card service will cease operations in the Middle East on August 25th and in Latin America on September 21st. The exchange, however, did not provide a specific reason for this decision but stated that less than 1% of its users in these regions would be impacted. It’s noteworthy that other Binance accounts globally remain unaffected.
Now, Binance is promoting its ‘Binance Pay’ as an alternative, describing it as “a contactless, borderless, and secure cryptocurrency payment technology.”
As the cryptocurrency exchange landscape continues to evolve, Binance's strategic decisions reflect its efforts to navigate a complex and ever-changing regulatory environment while maintaining its global presence.