Binance Closes Crypto Payments Service “Binance Connect”

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Binance Closes Crypto Payments Service "Binance Connect"
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Binance, the largest global cryptocurrency exchange, has revealed the discontinuation of Binance Connect (formerly known as Bifinity), a segment of its exchange enabling users to execute controlled transactions for buying and selling cryptocurrencies.

A Notice of Service Termination has been issued by Binance Connect. The advisory states, “As part of our strategic decisions, we are announcing the cessation of all Binance Connect services effective from August 16. We are dedicated to facilitating a seamless transition for all our partners during this process.”

The notice further elaborates, “In line with Anti Money Laundering regulations, we are obliged to retain users’ personal data as stipulated in the merchant agreement. Once the obligatory duration for data retention has concluded, we will proceed to expunge it from our systems.”

Bridging the Gap Between Cryptocurrency and Traditional Finance

Introduced on March 7, 2022, Binance Connect functioned as an intermediary linking cryptocurrency enterprises and the established financial system, affording users the capability to leverage traditional currency for procuring cryptocurrencies.

Upon its inception, the platform facilitated the acquisition and trading of 50 diverse cryptocurrencies via methods including Visa and Mastercard transactions.

In alignment with the company’s vision and enduring aspirations, the crypto exchange has chosen to discontinue these services on August 16. This decision is rooted in the company’s strategic focus on its core offerings and long-term objectives.

A spokesperson conveyed, “We regularly assess our product and service portfolio to ensure that our resources remain directed towards fundamental endeavors in harmony with our overarching strategy. Over the last six years, Binance’s evolution has transcended from a mere exchange to a global blockchain ecosystem encompassing multiple business dimensions. Our operational approach consistently evolves to accommodate shifting market dynamics and the evolving demands of our user base,” as shared in a statement provided to CoinDesk via email.

Former Advancements by Binance

The declaration follows a few months after Belgium’s Financial Services and Markets Authority (FSMA) issued a directive to promptly halt its activities within Belgium.

Likewise, the company had to shutter its operations in the Netherlands in June due to its inability to fulfill registration prerequisites.

In an additional development, the US Securities and Exchange Commission (SEC) lodged allegations against both the cryptocurrency exchange and its founder, Changpeng Zhao. The SEC accused them of orchestrating a complex scheme aimed at circumventing US federal securities laws.

As a result of these allegations, the SEC levelled 13 charges against the cryptocurrency exchange and Zhao. These charges encompass infractions like operating an unregistered securities exchange.


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