Binance Shuts Down Connect Crypto Payment Platform
- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.
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Cryptocurrency exchange Binance is shutting down its Connect fiat-to-crypto payment platform more than an year after it was officially launched, a company spokesperson said in a statement on 15 August.
According to the announcement, Binance Connecet — the exchange’s regulated buy-and-sell crypto arm formerly known as Bifinity — will be closing doors on Wednesday as the company wants to refocus its resources on its long-term goals and main products. Launched in March 2022, the platform acted as Binance’s fiat-to-crypto on ramp that helped crypto companies connect with the traditional finance system. The spokesperson said:
“At Binance, we periodically review our products and services to ensure that our resources continue to be focused on core efforts that align with our long-term strategy. In the last six years, Binance has grown from being an exchange to a global blockchain ecosystem with multiple business lines. We consistently adapt and modify our business approach in response to changing market and user needs.”
The service supported around 50 cryptocurrencies, as well as major fiat payment networks such as Visa and Mastercard. The same day it was revealed Binance Connect will be shutting down, BNB Chain-based decentralized exchange Biswap said the difficult decision was made due to its “provider closing the supporting card payments services”.
The day the fiat-to-crypto payments provider was launched, it entered into a partnership with crypto investment firm Eqonex, and provided it with a $36 million convertible loan. The United Kingdom’s Financial Conduct Authority (FCA) quickly issued a statement at the time expressing its concern over the loan.
- The popular crypto exchange has decided to sell its business in Russia to CommEX, a crypto exchange business that was officially launched on Tuesday.
- Binance noted that it will fully exit the Russian market, and have no ongoing revenue split or any option to buy back shares in the business.
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- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
- Scheduled for 7 July, the suspension will impact AVA, SPELL, BIFI, ALPACA, POLS, ACH, SUPER, and FARM on the BNB Smart Chain, Fantom, Avalanche, and Ethereum networks.
- Binance clarified that trading of these tokens will not be impacted, and that users will still be able to deposit and withdraw them through alternative networks that do not involve the Multichain project.