Binance continues its restructuring efforts, this time targeting its buy-and-sell crypto subsidiary.
Binance Connect, previously known as Bifinity and recognized as Binance's official bridge between traditional finance and the crypto world, is set to cease operations on August 16th.
The unexpected decision to halt the services of Binance Connect emerged in light of an announcement by the platform's supporting card payments service provider.
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The consequential cessation was succinctly detailed by the decentralized exchange, Biswap, based on the BNB Chain, in their tweet:
<Binance> has made a difficult decision to disable Binance Connect on 15 August due to its provider closing the supporting card payments service.
Further shedding light on this strategic move, the Binance spokesperson commented:
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. We consistently adapt and modify our business approach in response to changing market and user needs.
It is worth noting that Binance Connect was launched in March 2022 and functioned as an intermediary, linking the realms of traditional financial institutions and cryptocurrency firms. It supported 50 digital currencies and facilitated fiat transactions via prominent payment gateways like Visa and Mastercard.
Over the past months, Binance, as a global brand, experienced its share of challenges and successes in its operational jurisdictions. In May, Binance Australia had to suspend its fiat operations due to complications with a third-party collaborator. Furthermore, the German regulatory authorities declined the company’s request for a crypto custody license.
However, a beacon of positivity shone when the Dubai regulators awarded the firm with a crypto broker-dealer license in July.
The forthcoming termination of Binance Connect marks a significant shift in Binance's strategic direction. As the company grapples with various regulatory challenges worldwide, including lawsuits from the US Securities and Exchange Commission and Commodity Futures Trading Commission, the global crypto community keenly observes and awaits the next moves of this crypto behemoth.
