Major global cryptocurrency exchange Binance now allows users to buy crypto directly through Visa credit and debit cards.
In a Dec. 26 announcement, Binance said that its users are able to directly purchase four cryptocurrencies after binding their accounts to Visa cards issued within the European Economic Area.
Binance users can buy four cryptocurrencies with euros or pounds
Once the Visa card is linked, users can buy four cryptocurrencies including Bitcoin (BTC), Ether (ETH), XRP and Binance’s native token Binance Coin (BNB) with euros or British pounds.
According to the announcement, Binance plans to add support for Mastercard and additional currencies in the near future. The exchange also aims to extend the service to other jurisdictions beyond the European Economic Area.
Binance has previously made efforts to support crypto purchases with credit and debit cards. In September 2019, it officially announced that its users are able to buy five cryptos including Bitcoin and Ether using Visa and Mastercard via payments processing firm Koinal — for a 2.5% fee. Koinal was then unavailable in a number of major jurisdictions globally, including the United States, Russia and mainland China.
CryptoX has asked Binance whether the new card scheme will incur a processing fee but has not received a response at press time.
Credit card firms are reluctant to facilitate crypto trades
Cryptocurrency exchanges globally are attempting to capture more users by expanded ways by which traders can purchase and use digital assets, either by adding fiat gateways, releasing their own debit cards or in the current case, allowing direct crypto purchases through major payment carriers.
However, several major financial services firms have expressed their trepidation regarding what they perceive to be a volatile and unregulated asset class.
In 2018, a slew of banks banned customers from buying digital assets with their cards, including JPMorgan, Citibank India and Wells Fargo. In Britain, Lloyd’s Banking Group and Virgin Money also enacted similar bans.
In November 2019, Argentina’s central bank barred cardholders from buying cryptocurrencies with their cards soon after introducing more capital controls. In addition to limiting crypto purchases, the bank had tightened controls for the dollar, as it attempts to revitalize the flagging peso.
