Giant Cryptocurrency exchange Binance has announced that it shall allow users to purchase crypto assets by using their Visa and MasterCard debit or credit cards, which happened due to the exchange’s partnership with payment processor Simplex.
The crypto coins that shall become available for purchase for this are Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP).
In the press release, the Binance team says the benefits of using cards to buy cryptocurrencies are:
“Fast: Average 10-30 mins for cryptocurrency to reach your wallet; Low Fees: only 3.5% per transaction or 10 USD, whichever is higher; Convenient: Visa and MasterCard accepted.”
CEO of Binance, ChangPeng “CZ” Zhao, has stated that, “as we add more options, the fee will come down.”
Currently, you are are not utilizing Binance Coin (BNB) to pay your trading fees, each trade shall carry a standard fee of 0.1% according to information available on the exchanges website.
In the official release ChangPeng Zhao had this to say,
“We want to provide Binance traders with fast and easy access to crypto, in the most secure way possible,” later adding, “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.”
Even so, there are some restrictions in place: Jurisdictions restricted from utilizing simplex are, Afghanistan, China, Congo (Brazzaville), Congo (Kinshasa), Cuba, Democratic People’s Republic of Korea, Eritrea, Iran, Iraq, Ivory Coast, Kyrgyzstan, Lebanon, Libya, South Sudan, and Sudan. As for locations inside the US, the following states are not supported: New York, Georgia, Connecticut, New Mexico, Hawaii, and Washington.
According to CEO, Simplex doesn’t support every single credit cards, “but do have a decent coverage.”
Buy crypto with your credit card!— CZ Binance (@cz_binance) January 31, 2019
In our testing, Simplex does not support all credit cards, but do have a decent coverage. Good luck! https://t.co/qM3LJrEKJd
Reaction to this has been quite mixed among the crypto community. This has to do with the debt-incurring credit card usage with crypto having always been quite controversial. Mostly due to top exchanges having to change their stances on the support for it.
A good example of this would by cryptocurrency exchange Coinbase, who’ve stopped allowing credit card purchases in the US a year ago, although when it was allowed by them, customers were found to have incurred additional charges. Although, that exchange still allows credit and debit card from outside the US, as well as bank account transfers.