Binance Users Can Now Use Credit Cards To Buy Crypto

Wilfred Michael 

Wilfred Michael

News reporter

31 January 2019,
22:42
Binance Users Can Now Use Credit Cards To Buy Crypto

Binance, the largest crypto exchange in the world by trading volume said in an announcement on Thursday that users can now use their credits card to purchase cryptocurrencies on their platform.

The new offering is possible because of Binance’s new partnership with Simplex, an Israeli-based payment processor. Simplex will help Binance process payments from users who hold either Mastercard or Visa credit cards.

For a start, Binance is allowing users to convert fiat on their credit cards to Bitcoin, Ethereum, Litecoin or Ripple (XRP). In the future, the exchange hopes to support direct conversion of credit card payments to other altcoins.

While sharing his thoughts about the Binance’s new payment gateway, CEO Chapeng Zhao said,

“The crypto industry is still in its early stages, and most of the world’s money is still in fiat. Building fiat gateways is what we need now to grow the ecosystem, increase adoption and introduce crypto to more users.”

In a separate announcement, Binance CEO acknowledged that some credit cards failed to complete the transactions during their trial with Simplex. However, the majority would go through since the company has decent coverage.

Also, information from Binance’s terms and conditions page shows that the following countries can still not buy crypto with credit cards on the exchange :

  • Afghanistan

  • Iran

  • Congo

  • Eritrea

  • Sudan

  • Kyrgystan

  • Ivory Coast

  • Lebanon

Six U.S states are also blacklisted :

  • New York

  • Washington

  • Hawaii

  • New Mexico

  • Georgia

  • Connecticut

2019 has already started with a bang for Binance. Two weeks ago, the exchange launched Binance Jersey, a U.K-focused subsidiary that allowed users to directly convert Pounds (GBP) and Euros (EUR) to any of the top four major cryptocurrencies.

However, a question that has arisen in recent weeks is whether centralized exchanges would thrive if national stock exchanges decide to open a crypto exchange subsidiary. Jamaica’s Stock Exchange is already conducting a pilot for this purpose while the Stock of Exchange of Thailand has hinted it will apply for a crypto license later this year.

 

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