Binance, which is under scrutiny by the U.S. Securities and Exchange Commission (SEC), is taking steps to restructure its business strategy. The cryptocurrency exchange reportedly shut down its fiat-to-crypto platform Binance Connect on Wednesday. The platform was launched a year ago in March 2022. Its main goal is to allow retailers to accept payments in the form of cryptocurrencies. The exchange plans to continue focusing on projects that promise long-term returns.
“At Binance, we regularly review our products and services to ensure our resources remain focused on core work that aligns with our long-term strategy. We are constantly adapting and modifying our business approach to respond to changing market and user needs. ”CoinTelegraph reports lead A company spokesman said.
The move was also confirmed by Biswap, a decentralized exchange built on Binance’s BNB chain, on X (formerly known as Twitter).
The Biswap team stays up to date with the latest DeFi news and aims to keep you informed.
— Biswap (@Biswap_Dex) August 15, 2023
Binance Connect has historically allowed users to process fiat-to-crypto payments, bridging the gap between cryptocurrencies and traditional finance. The platform has listed 50 cryptocurrencies at launch and has partners such as Mastercard and Visa.
Community members were left in limbo after promising crypto projects like FTX and Terra failed last year. This could lead to fewer cryptocurrency-friendly retailers processing payments through cryptocurrencies.
The company has also previously canceled services for various reasons.For example, last May, the exchange disabled derivatives services in Spain because authorities there It is said It is believed that such products will bring operational complexity to investors and expose them to the risk of losing more than their investment.
Binance has also come under heightened regulatory scrutiny in the United States. Cryptocurrency exchanges are under the scrutiny of the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC). Currently, Binance has applied for a protective court order with the SEC, claiming that the regulator’s request for information in the ongoing case against the exchange is “overly broad” and “overly burdensome.”