Binance Connect, the exchange’s regulated cryptocurrency buying and selling arm, will shut down on August 16, Cointelegraph confirmed via an email from a Binance spokesperson on August 15.
On the same day, BNB Chain-based decentralized exchange Biswap tweeted that Binance “made the difficult decision to disable @Binance_Connect on August 15th as its provider shut down support for card payments .” A spokesperson for Binance said:
“At Binance, we regularly review our products and services to ensure our resources continue to focus on our core work in line with our long-term strategy. Over the past six years, Binance has grown from an exchange to multiple businesses The online global blockchain ecosystem. We are constantly adapting and modifying our business approach to respond to changing market and user needs.”
Binance Connect Launched on March 7, 2022 as Bifinity. The service acts as a fiat-to-crypto payment provider, connecting cryptocurrency companies with the traditional financial system. The platform supports 50 cryptocurrencies at launch, as well as fiat payment methods such as Visa and Mastercard. On the same day, the U.K.’s Financial Conduct Authority (FCA) raised concerns about Bifinity’s $36 million convertible loan to Nasdaq-listed crypto investment firm Eqonex.
As a result of the investment, certain holders of Bifinity’s parent company, Binance Group, which is not regulated in the UK, may be deemed beneficial owners of Eqonex, the FCA wrote. Binance Connect also acts as a fiat-to-crypto on-ramp provider for the company’s self-hosted Trust Wallet.
The Biswap team stays up to date with the latest DeFi news and aims to keep you informed.
— Biswap (@Biswap_Dex) August 15, 2023
In the same month, Binance Australia suspended its fiat currency services, citing third-party issues. In June, German regulators rejected Binance’s request for a cryptocurrency custody license.However, the company received a cryptocurrency broker-dealer license in July with Dubai regulators. The exchange is currently filing lawsuits with the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission alleging it operates an unlicensed exchange in the United States.
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