Thursday, April 18, 2024
Binance Connect to cease operations on August 16.

Binance Connect to cease operations on August 16.

Binance Connect to Shut Down on August 16

Binance Connect, the regulated buy-and-sell crypto arm of Binance exchange, will be shutting down on August 16, according to a confirmation from a Binance spokesperson obtained by Cointelegraph via email on August 15.

Biswap, the decentralized exchange on the BNB Chain, tweeted on the same day that Binance has made the decision to disable Binance Connect on August 15 due to the provider closing the supporting card payments service.

“At Binance, we periodically review our products and services to ensure that our resources continue to be focused on core efforts that align with our long-term strategy. In the last six years, Binance has grown from being an exchange to a global blockchain ecosystem with multiple business lines. We consistently adapt and modify our business approach in response to changing market and user needs.”

Binance Connect, originally known as Bifinity, was launched as a fiat-to-crypto payments provider on March 7, 2022. The platform supported 50 cryptocurrencies and offered fiat payment methods such as Visa and Mastercard.

Concerns raised by the Financial Conduct Authority (FCA)

On the same day as the launch, the UK’s Financial Conduct Authority expressed concerns over Bifinity providing a $36 million convertible loan to crypto investment firm Eqonex. Due to this investment, certain holders of Binance Group, Bifinity’s parent company, may be considered as beneficial owners of Eqonex. Additionally, Binance Connect serves as the fiat-to-crypto on-ramp provider for the self-custody Trust wallet owned by Binance.

Recent Developments and Legal Challenges

Binance Australia suspended fiat services citing issues with a third party in the same month. In June, German regulators rejected Binance’s crypto custody license request. However, in July, the company obtained a crypto broker-dealer license from Dubai regulators. Binance is currently facing litigation from both the US Securities and Exchange Commission and Commodity Futures Trading Commission over allegations of operating an unlicensed exchange in the US.

Conclusion

The decision to shut down Binance Connect is part of Binance’s strategy to focus on core efforts aligning with their long-term goals. The company continues to adapt to changing market and user needs. With various regulatory and legal challenges, Binance aims to navigate the ever-evolving crypto landscape while ensuring compliance and delivering valuable services to its global user base.

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For more information, read the article “‘Elegant and ass-backward’: Jameson Lopp’s first impression of Bitcoin