Responding to the evolving landscape of market requirements and user preferences, Binance Connect is preparing for a close.
On August 15, just a day before the scheduled shutdown, Cointelegraph received confirmation directly from a Binance representative about the discontinuation of Binance Connect, the licensed crypto trading segment of Binance’s expansive ecosystem.
That same day, a tweet emerged from the BNB Chain-affiliated decentralized exchange, Biswap. It revealed Binance’s “challenging call” to suspend @Binance_Connect by August 15, driven by its provider ceasing support for card payments. Delving deeper into this significant move, the Binance representative elucidated:
“Our dedication at Binance is towards periodic evaluations of our myriad of products and services. This ensures we channel our energies towards paramount initiatives syncing with our overarching strategy. Over the past half-decade, Binance has metamorphosed from merely an exchange platform to a sprawling global blockchain nexus with diversified business avenues. As with any dynamic entity, our modus operandi continually reshapes to cater to the ever-fluctuating market and consumer demands.”
Incepted on March 7, 2022, and previously known as Bifinity, Binance Connect served as a linchpin between fiat-to-crypto transactions, bridging the gap between digital currency enterprises and the conventional finance realm. The platform, at the outset, was equipped to support a range of 50 digital currencies, seamlessly integrating with mainstream payment avenues like Visa and Mastercard. However, this launch coincided with the U.K.’s Financial Conduct Authority (FCA) voicing apprehensions pertaining to Bifinity’s proposition of a $36 million convertible loan to the Nasdaq-affiliated crypto investment entity, Eqonex.
**Binance Connect Set to Discontinue on August 16** Responding to the evolving landscape of market requirements and user preferences, Binance Connect is preparing for a close. On August 15, just a day before the scheduled shutdown, Cointelegraph received confirmation directly from a Binance representative about the discontinuation of Binance Connect, the licensed crypto trading segment of Binance’s expansive ecosystem. That same day, a tweet emerged from the BNB Chain-affiliated decentralized exchange, Biswap. It revealed Binance’s “challenging call” to suspend @Binance_Connect by August 15, driven by its provider ceasing support for card payments. Delving deeper into this significant move, the Binance representative elucidated: “Our dedication at Binance is towards periodic evaluations of our myriad of products and services. This ensures we channel our energies towards paramount initiatives syncing with our overarching strategy. Over the past half-decade, Binance has metamorphosed from merely an exchange platform to a sprawling global blockchain nexus with diversified business avenues. As with any dynamic entity, our modus operandi continually reshapes to cater to the ever-fluctuating market and consumer demands.” Incepted on March 7, 2022, and previously known as Bifinity, Binance Connect served as a linchpin between fiat-to-crypto transactions, bridging the gap between digital currency enterprises and the conventional finance realm. The platform, at the outset, was equipped to support a range of 50 digital currencies, seamlessly integrating with mainstream payment avenues like Visa and Mastercard. However, this launch coincided with the U.K.’s Financial Conduct Authority (FCA) voicing apprehensions pertaining to Bifinity’s proposition of a $36 million convertible loan to the Nasdaq-affiliated crypto investment entity, Eqonex. According to the FCA, such a financial move might position certain stakeholders of Binance Group’s parent company, a body not governed by U.K. regulations, in a favorable light with regards to Eqonex. Not just limiting to these services, Binance Connect was also the prime fiat-to-crypto gateway for the company’s Trust wallet, a self-custody solution. While Binance Australia pulled the plug on its fiat services within that month, citing third-party complications, Binance’s crypto custody license was subsequently declined by German authorities in June. Yet, a silver lining appeared in July as Binance acquired a crypto broker-dealer permit from Dubai’s regulatory body. Currently, Binance finds itself navigating the intricate waters of legal disputes, facing both the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission over allegations of unauthorized exchange operations in the U.S.According to the FCA, such a financial move might position certain stakeholders of Binance Group’s parent company, a body not governed by U.K. regulations, in a favorable light with regards to Eqonex. Not just limiting to these services, Binance Connect was also the prime fiat-to-crypto gateway for the company’s Trust wallet, a self-custody solution.
While Binance Australia pulled the plug on its fiat services within that month, citing third-party complications, Binance’s crypto custody license was subsequently declined by German authorities in June. Yet, a silver lining appeared in July as Binance acquired a crypto broker-dealer permit from Dubai’s regulatory body. Currently, Binance finds itself navigating the intricate waters of legal disputes, facing both the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission over allegations of unauthorized exchange operations in the U.S.
