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- Binance Connect was formerly called Bifinity and launched last year with the support of over 50 crypto assets and major payment methods.
- Binance coin (BNB) dropped approximately 2.1 percent in the past 24 hours to trade around $233 on Wednesday.
The leading cryptocurrency exchange in daily traded volume and registered users, Binance, continues to feel regulatory pressure amid the mainstream adoption of digital assets. Big corporations are pulling all strings to enter the nascent blockchain and cryptocurrency industry.
As a result, veteran crypto startups are having a challenging time getting regulatory approvals to compete with the same big-name corporations. For instance, PayPal recently launched its U.S. dollar-backed stablecoins, and $9 trillion AUM investment manager BlackRock filed for a Bitcoin ETF.
Additionally, traditional fund managers including Charles Schwab, Citadel Securities, and Fidelity Digital AssetsSM teamed up to form a new crypto exchange dubbed EDX Markets.
Binance Surrenders Its One-Year-Old On-ramp Service Provider
After about a year of operation, Binance announced that it would shut down its fiat-to-crypto on-ramp service provider Binance Connect, formerly known as Bifinity. Notably, Binance Connect offered API integration for mainstream and crypto merchants to scale their businesses.
For instance, Binance Connect was used by the firm’s crypto custody platform Trust Wallet to facilitate seamless on-ramping services through different payment methods such as VISA, and Mastercard. As a result, Binance Connect services will not be available for all customers beginning August 15.
Dear Biswappers,
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
— Biswap (@Biswap_Dex) August 15, 2023
According to the company’s spokesperson, the exchange has to shift its focus and maintain its core business despite Binance Connect being regulated in different jurisdictions. The exchange has been a favorite among many crypto newbies as it offers attractive investment opportunities and a wide market.
“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,” a Binance spokesperson noted.
Notably, Binance Connect offered its users the ability to purchase more than 50 crypto assets. As a result, the exchange intended to help onboard mainstream investors into the crypto industry. However, the company has attracted significant attention from regulators since the implosion of FTX and Alameda Research late last year with over $30 billion wiped out of the industry.
Bigger Picture
The troubles of Binance Connect began after the firm offered Nasdaq-listed crypto investment firm Eqonex a $36 million convertible loan at its beginning. As a result, the United Kingdom’s Financial Conduct Authority (FCA) expressed its concerns over Binance’s forced entry into the UK market without proper regulations.
Meanwhile, Binance has increased its focus with markets that have already issued it a green light on its operations. Moreover, the exchange takes pride in deep liquidity, and a vast ecosystem of DeFi developers that most countries would end up getting sucked into.
