That's really strange to me. That prevents the card from being used in the US too. I'm guessing not that many people from your part of the world travel to the US then.
I know that one of the reasons is that here is very frequent that the police find some tiny electronic systems (skimmers/false_keyboard + minicams) glued or stuck on a lot of atm and pos with the specific purpose of cloning your cards using the stripe. So the only strong solution to avoid all this is making cards only with the chip, making those systems useless
I haven't seen a magstripe transaction in probably a decade and I live in Cyprus (hardly a technologically advanced country). In the past couple of years everyone also got issued a contactless card which doesn't need a pin for sub 20euro ttransactions and obviously no need to insert it in the card reader.