Binance Connect, the regulated buy-and-sell crypto arm of Binance’s exchange, will close on August 16. They confirmed this closure on August 15 through an email conversation with a spokesperson from Binance. According to a spokeswoman, the decision was made in reaction to “changing market and customer needs.”
On the same day, Biswap, a BNB Chain-based decentralized exchange, took to Twitter to announce that Binance has made a brutal call due to their service provider discontinuing the supporting card payments service. They have chosen to deactivate @Binance_Connect beginning August 15.
The Biswap team keeps abreast of the latest DeFi news and aims to inform you right away.
— Biswap (@Biswap_Dex) August 15, 2023
As stated by a Binance spokesperson:
Binance’s, the renowned cryptocurrency platform, regularly assesses its products and services to ensure a steadfast dedication to core initiatives that align harmoniously with its long-term strategy.
Over the past six years, Binance’s has impressively expanded from an exchange into a global blockchain ecosystem encompassing diverse business lines. Demonstrating adaptability and attentiveness to shifting market dynamics and user requirements, Binance’s consistently adjusts and enhances its approach.
Bifinity Launches with Fiat-Crypto Gateway Amid Regulatory Challenges
On March 7, 2022, the official launch of Binance’s Connect took place under the name Bifinity. Furthermore, the platform served as a gateway between cryptocurrency companies and the traditional financial system, facilitating fiat-to-crypto payments. Moreover, at its inception, it offered support for 50 cryptocurrencies and various payment methods, including Visa and Mastercard.
Coincidentally, on the same day, the Financial Conduct Authority (FCA) of the United Kingdom expressed concerns. Bifinity provided a $36 million convertible loan to Eqonex, a crypto investment firm listed on Nasdaq.
Additionally, the FCA stated that the investment might involve certain Bifinity shareholders. Binance Group, unregulated in the U.K., could become potential Eqonex owners. Binance Connect converts fiat to crypto via self-custody Trust Wallet, facilitating currency transition on the platform.
In the same month, Binance Australia halted its fiat services due to an issue with a third party. German regulators denied their crypto custody license request in June. However, in July, they obtained a crypto broker-dealer license with Dubai regulators.
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Additionally, Binance is currently engaged in legal proceedings against the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission for allegedly operating an unlicensed business in the United States.