Binance, the world's largest cryptocurrency exchange, has announced the discontinuation of its buying and selling service, Binance Connect (formerly known as Bitfinity). The service is set to cease operations on August 16, as Binance aims to refocus its efforts on its primary product and long-term objectives, according to a report by CoinDesk.
A spokesperson from Binance stated that the decision to shut down Binance Connect aligns with the exchange's strategy of regularly evaluating its products and services. Binance has transformed from a single exchange to a global business with various facets within the blockchain ecosystem over the past six years. The spokesperson added that Binance remains committed to adapting and adjusting its business strategies to accommodate the dynamic market and evolving user requirements.
On the same day, the decentralized exchange based on Binance Coin (BNB) tweeted that the decision to end Binance Connect was due to the cessation of card payment services support by Binance's provider. Binance Connect was launched in March 2022, enabling merchants to accept more than 50 different cryptocurrencies and facilitating major payment methods such as Mastercard and Visa.
However, the service had raised regulatory concerns at its inception. The UK's Financial Conduct Authority (FCA) expressed reservations about a $36 million convertible loan provided by Binance Connect to the crypto investment firm Eqonex. The FCA argued that this strategic partnership might potentially lead to specific individuals within the Binance Group becoming "beneficial owners" of Eqonex's UK subsidiary, Diginex.
