A spokesperson said the move came in response to 'changing market and user needs.'
Binance Connect, the regulated buy-and-sell crypto arm of Binance exchange, will shut down on August 16. Cointelegraph confirmed on August 15 via an email with a Binance spokesperson.
The same day, BNB Chain decentralized exchange Biswap tweeted that Binance "has made a difficult decision to disable Binance Connect on 15 August due to its provider closing the supporting card payments service." The Binance spokesperson stated:
"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."
Binance Connect launched on March 7, 2022, and was then known as Bifinity. The service acted as a fiat-to-crypto payments provider connecting crypto firms with the traditional finance system. At its launch, the platform supported 50 cryptocurrencies, along with fiat payment methods including Visa and Mastercard. The same day, the United Kingdom's Financial Conduct Authority (FCA) expressed its concern over Bifinity providing a $36 million convertible loan to NASDAQ-listed crypto investment firm Eqonex.
The FCA wrote that due to the investment, certain holders of Bifinity's parent Binance Group, which is unregulated in the U.K., may be considered as beneficiary owners of Eqonex. Binance Connect also serves as the fiat to crypto on-ramp provider for the firm's self-custody Trust wallet.
Dear Biswappers,— Biswap (@Biswap_Dex) August 15, 2023
The Biswap team keeps abreast of the latest DeFi news and aims to inform you right away.
After a thorough consideration, @binance has made a difficult decision to disable @Binance_Connect on 15 August due to its provider closing the supporting card payments… pic.twitter.com/HcooyLn4sg
The same month, Binance Australia suspended fiat services, citing an issue with a third party. In June, German regulators rejected Binance's crypto custody license request. Though in July, the firm secured a crypto broker-dealer license with Dubai regulators. The exchange is currently engaged in litigation with both the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission on allegations of operating an unlicensed exchange in the U.S.