Confirmed through correspondence with a spokesperson from Binance, it has been affirmed that Binance Connect, the compliant division responsible for cryptocurrency buying and selling within the Binance exchange, is scheduled to terminate its operations on Aug. 16, according to a press release.
Notably, this development was communicated by Cointelegraph on Aug. 15, following an email exchange with a Binance representative. On the same day, Biswap, a decentralized exchange rooted in the BNB Chain, conveyed via Twitter that Binance had taken the difficult decision to disable Binance Connect. This step was attributed to the discontinuation of the supporting card payments service by the service provider.
"Within Binance, we conduct periodic evaluations of our array of products and services to ensure our resources remain dedicated to core endeavors that align with our enduring strategy. Over the past six years, Binance has evolved from a mere exchange into a global blockchain ecosystem, encompassing diverse business facets. Our approach is consistently attuned and adapted to reflect the evolving market landscape and the evolving needs of our user base," a Binance spokesperson said.
Initially introduced on March 7, 2022, under the moniker Bifinity, Binance Connect functioned as a conduit for fiat-to-crypto transactions, linking cryptocurrency enterprises with the conventional financial framework. At launch, the platform facilitated dealings involving 50 cryptocurrencies, coupled with conventional payment methods such as Visa and Mastercard. In tandem with this, the Financial Conduct Authority (FCA) of the United Kingdom expressed reservations about Bifinity's provision of a convertible loan amounting to $36 million to the Nasdaq-listed crypto investment firm Eqonex. The FCA underscored the potential classification of specific Binance Group stakeholders — which operate beyond the purview of U.K. regulation — as beneficial owners of Eqonex due to this investment.
Binance Connect also served as the entry point for fiat-to-crypto transitions for the self-custody Trust wallet offered by the company. Notably, Binance Australia had previously suspended its fiat services, citing a third-party issue in the same month. Furthermore, German regulators declined Binance's application for a crypto custody license in June. However, the firm attained a crypto broker-dealer license from Dubai regulators in July.
