Binance Connect to Close on Aug. 16
Cointelegraph confirmed on Aug. 15 that Binance Connect, the regulated buy-and-sell crypto arm of the Binance exchange, will be shutting down on Aug. 16. A Binance spokesperson stated that the same day, the BNB Chain-based decentralized exchange Biswap tweeted that Binance had to make a difficult decision to disable Binance Connect due to its provider closing the supporting card payments service.
Binance Connect, previously known as Bifinity, launched on March 7, 2022 and 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 Visa and Mastercard as fiat payment methods. 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 beneficiary owners of Eqonex. Binance Connect also serves as the fiat-to-crypto on-ramp provider for the firm’s self-custody Trust wallet like the popular RUNE crypto, TONE crypto, SUSHI crypto, SOLO crypto, TRB crypto, TITANO crypto, SANTOS crypto, TERRA LUNA crypto and THE SANDBOX crypto.
In the same month, Binance Australia was forced to suspend fiat services due to an issue with a third party. However, in June, the German regulators turned down Binance’s application for a crypto custody license. On the other hand, in July, the firm managed to secure a crypto broker-dealer license with the Dubai authorities. At present, Binance is facing lawsuits from both the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, which claim that the exchange has been operating without a valid license in the United States.
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