Binance has suspended withdrawals through Visa and Mastercard for its users in Ukraine. The measure, linked to its fiat provider Bifinity, comes against a backdrop of growing regulatory pressures in Europe. This decision complicates access to funds for Ukrainians, already weakened by the war and financial restrictions.
In brief
- Binance has suspended Visa and Mastercard withdrawals and deposits for its users in Ukraine.
- The move is linked to restrictions targeting Bifinity UAB, Binance's fiat provider based in Lithuania.
- No timetable for restoring the service has been communicated to date by the platform.
- Binance recommends Ukrainian users to use alternatives like SEPA transfers or P2P marketplace.
Binance cuts card withdrawals for Ukraine
Binance has officially confirmed the suspension of Visa and Mastercard withdrawals for its users in Ukraine, a decision that also applies to bank card deposits, as the crypto exchange rejected criticism of its handling of the Upbit hack.
This measure was announced via the platform's support center, following changes affecting Bifinity UAB, its fiat service provider based in Lithuania.
“Due to changes in the services of our fiat provider, Bifinity UAB, deposits and withdrawals via Visa/Mastercard are no longer available in Ukraine”has specified Binance.
Here are the essential facts to remember regarding this suspension:
- The immediate suspension of fiat withdrawals via Visa and Mastercard for all users located in Ukraine;
- Card deposits are also suspended, cutting off a vital channel for funding accounts with euros or hryvnias;
- Bifinity UAB, Binance's entity responsible for processing fiat payments in Europe, is at the heart of this measure due to restrictions imposed by the Bank of Lithuania.
No date for resumption of service has been communicated at this stage. This decision comes against a backdrop of strengthening regulatory oversight in Europe, particularly around activities related to the management of fiat payments for crypto platforms.
If Binance remains discreet on the exact nature of the restrictions, it is clear that this suspension is part of a general trend of reduction of fiat entry/exit points in several European jurisdictions.
A direct impact on users
Beyond the simple technical fact, this suspension of service has immediate consequences for Ukrainian users, who find themselves unable to convert their crypto assets into local currency via traditional channels.
Binance has confirmed in its support channels that “deposits and withdrawals via Visa/Mastercard are no longer available”specifying that Ukrainian users are now redirected to alternative methods, such as SEPA bank transfers or the P2P market integrated into the platform.
However, these alternatives are not without limits. SEPA transfers can be slow or unavailable depending on local banks, while the P2P market, while useful, exposes users to more volatility and counterparty risks.
In a country where access to traditional banking services is already weakened by the war context, this measure adds an additional layer of complexity for crypto users wishing to convert their funds or use them in daily life.
While $144 million escapes post-sanctions controls, the suspension of withdrawals in Ukraine highlights the fragility of fiat-crypto interfaces. The case reveals a system that is still permeable, where regulatory adjustments are struggling to contain flows.
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