Binance Halts Direct Card Withdrawals for Some Ukrainian Users Amidst Regulatory Shifts

Binance Pauses Direct Card Withdrawals for Some Ukrainian Users Amidst Regulatory Shifts

Several Ukrainian users of the prominent cryptocurrency exchange Binance have recently encountered an unexpected roadblock: the halting of direct fiat withdrawals to their Visa and Mastercard bank cards. This development, while concerning for many, stems from a confluence of evolving financial regulations and internal platform adjustments by Binance.

Binance has clarified that this restriction specifically impacts users who have been utilizing the services of Bifinity UAB, a Lithuanian-registered payment company established by Binance. Bifinity's primary role has been to streamline fiat transactions, including euros and dollars, for Binance users, particularly within the European Economic Area (EEA). It served as a crucial gateway for both depositing and withdrawing funds via cards and bank transfers.

Navigating the Regulatory Labyrinth: MiCA and Bifinity's Sunset

The root cause of this disruption lies in the impending implementation of the Markets in Crypto-Assets (MiCA) regulation. In anticipation of these new rules, Binance is phasing out its partnership with Bifinity UAB, with the cessation of services slated for the end of 2025. This proactive measure is part of Binance's broader strategy to transition to new, compliant payment providers. The interim period, however, has led to the temporary suspension of direct card withdrawals through Bifinity in Ukraine and other affected regions.

Binance emphasizes that the halt on Bifinity-related withdrawals is indefinite, but crucially, other withdrawal channels remain operational for the majority of its user base. The core functionality of trading crypto assets and performing on-platform transactions remains entirely unaffected. Furthermore, the most popular method for crypto exchange among Ukrainians – the peer-to-peer (P2P) trading system – continues to be fully accessible, offering a vital alternative.

Beyond Card Withdrawals: Other Service Adjustments

The Bifinity-related changes extend beyond just card withdrawals. Binance has also suspended its "Recurring Buy" service, a feature that enabled users to automatically purchase cryptocurrencies on a regular schedule. In addition, all active limit buy orders for crypto assets using fiat currency have been canceled. It's imperative to note that these modifications specifically pertain to purchase and withdrawal operations involving Bifinity, not account top-ups.

For Ukrainian users, the process of depositing funds into their Binance accounts remains largely unchanged. Visa and Mastercard deposits are still possible, functioning as incoming transactions. Services like Apple Pay and Google Pay continue to facilitate fiat currency deposits. For more substantial transactions or for those seeking to withdraw funds via traditional banking routes, SWIFT bank transfers are reportedly available for both deposits and withdrawals.

Zen.com and the Broader Picture of Fiat Infrastructure

Binance has also provided an update on the status of the payment service Zen.com. While it remains a supported payment method, full functionality for deposits and withdrawals is not expected until January 6, 2026. These operational adjustments underscore the inherent dependence of cryptocurrency exchanges' fiat infrastructure on traditional banking and payment partners. Any shifts within these partner networks inevitably ripple through to the accessibility of "crypto-to-card" operations, which are fundamental for widespread user adoption.

In the current climate, Ukrainian Binance clients seeking to withdraw their funds are being guided towards SWIFT transfers or available exchange-based alternatives. This situation serves as a stark reminder of the dynamic and often complex interplay between the burgeoning crypto market and the established financial world, where regulatory changes can swiftly alter user experiences.