Infini Shuts Down Card Services Amid Regulatory Pressures

China’s most popular crypto card payment service, Infini, has announced the shutdown of all its card services, marking a significant shift in the digital currency landscape. Starting from June 17, all of Infini’s card payment services will cease to function, affecting products such as the Global Card, Lite Card, and Tech Card. These cards will be suspended for both offline usage and on the Infini digital app, as stated in a Telegram notice.

The platform has assured customers that all core services will continue to operate as usual. This means that services on the app, such as top-ups, withdrawals, and yield functions, will remain fully operational despite the suspension of its payment cards. Users will also be able to apply for card refunds to regain the funds from their now frozen cards. The platform will automatically process refunds for card applications without users needing to take any manual action. The refund will be processed within 10 business days, and the funds will be distributed to the user’s account balance. Any ongoing bills will be refunded directly to the user’s Infini account, with these refunds expected to be completed within 5 to 21 business days.

Infini, a crypto-first neobank based in China Hong Kong, has a significant user base in China. Despite the region’s long-standing ban on cryptocurrency, users are still able to access Infini services through VPN or other providers. The platform combines stablecoin yield generation with a crypto-backed debit card, offering easy real-world spending and everyday earnings. Infini has managed to gain more than 10,000 followers on X and reached over $50 million in total value locked across its global user base.

Most recently in late February, Infini suffered a $50 million insider exploit which involved an in-house engineer that allegedly embezzled funds from the platform for personal gain. Back in March, Infini founder Christian Li offered the hacker 20% of the bounty and legal immunity if they return the stolen funds. This incident, along with the regulatory pressures and market dynamics, likely contributed to the decision to shut down the card services.

The shutdown of this service, which has been a prominent player in facilitating crypto transactions, comes at a time when regulatory pressures and market dynamics are evolving rapidly. This development underscores the challenges faced by crypto payment services in navigating the complex regulatory environment and maintaining user trust. The decision to shut down the service is likely driven by a combination of factors, including increased regulatory scrutiny and the need to adapt to changing market conditions. The service has been a key player in the crypto payment ecosystem, offering users a convenient way to transact using digital currencies. Its closure will leave a void in the market, prompting users to seek alternative payment solutions.

The shutdown also highlights the broader challenges faced by the crypto industry in China. The regulatory environment for digital currencies has been stringent, with authorities implementing measures to curb the use of crypto for illicit activities and to protect investors. This regulatory pressure has made it difficult for crypto payment services to operate sustainably, leading to the closure of several prominent players in the market.

The impact of this shutdown will be felt across the crypto community, particularly among users who have relied on the service for their payment needs. The closure will necessitate a transition to other payment methods, which may not offer the same level of convenience or security. This shift could also lead to a temporary disruption in the crypto payment ecosystem, as users and businesses adapt to the new landscape. The shutdown of China's most popular crypto payment card service is a reminder of the volatile nature of the crypto industry. The closure underscores the need for crypto payment services to remain agile and adaptable in the face of regulatory changes and market dynamics. As the industry continues to evolve, it will be crucial for payment services to innovate and offer solutions that meet the needs of users while complying with regulatory requirements.