Binance Terminates Fiat-to-crypto Payment Service

Binance, the world’s largest crypto exchange by trading volume, has recently decided to wind up its fiat-to-crypto payment platform, Binance Connect.

This platform, which had its origins a little over a year ago, was initially known as “Bifinity.” Today, August 16, 2023, marks the official discontinuation of the service.

In a statement given to CoinDesk, Binance revealed, “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.”

The past half a decade has witnessed Binance’s significant evolution. From its inception as just an exchange, it has expanded into a vast blockchain ecosystem, incorporating a diverse range of business ventures. A company spokesperson remarked, “We consistently adapt and modify our business approach in response to changing market and user needs.”

Binance Connect: Fiat-to-crypto On-ramp

Binance Connect was designed to act as the primary channel bridging Binance with various blockchain platforms. This was executed by facilitating smooth fiat-to-crypto transitions. An impressive array of over 50 digital currencies found support on this platform. Moreover, it was compatible with mainstream payment methods, including but not limited to credit giants Visa and Mastercard.

Another interesting facet is the association of Joseph, the brother of the former UK Prime Minister Boris Johnson, with Binance Connect. He was in an advisory capacity but chose to depart in December 2022.

Embarking on its journey on March 7, 2022, under the moniker Bifinity, the platform held the ambitious vision of bridging the existing chasm between cryptocurrency establishments and established financial systems. At its initiation, it was well-equipped to support 50 different cryptocurrencies.

In addition, it was integrated to facilitate fiat transactions, especially through major credit avenues like Visa and Mastercard. However, this launch wasn’t devoid of controversies.

On this very day, the Financial Conduct Authority (FCA) of the UK expressed reservations about Bifinity’s decision to offer a substantial $36 million convertible loan to Eqonex, a renowned crypto firm listed on Nasdaq.

The FCA’s primary concern revolved around this particular investment maneuver. They speculated that certain key stakeholders affiliated with Bifinity’s parent entity, the Binance Group (which operates without UK regulatory oversight), could potentially be viewed as beneficiary owners of Eqonex.

Also, it is good to mention that Binance Connect had a significant role, serving as the fiat-to-crypto gateway for Binance’s proprietary Trust wallet.

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