Binance Connect’s Crypto Operations Come to a Close

Binance Connect, the crypto transaction subsidiary operating within the Binance ecosystem under regulatory oversight, is preparing to conclude its operations on August 16th. This unexpected decision to halt Binance Connect's services, which was confirmed by Biswap, a decentralized exchange on the BNB Chain, stemmed from Binance's payment card service provider discontinuing support.

Addressing Regulatory Challenges

Originally introduced on March 7, 2022, as "Bifinity," Binance Connect served as a link between the world of cryptocurrency and traditional financial systems. During its inception, the platform enabled transactions involving around 50 different cryptocurrencies and utilized well-recognized methods such as Visa and Mastercard. Simultaneously, concerns arose from the U.K.'s Financial Conduct Authority (FCA) regarding Bifinity's $36 million convertible loan to Eqonex, a crypto investment entity listed on Nasdaq.

In the same month of its launch, Binance Australia suspended its fiat services due to complications involving external factors. By June, German authorities rejected Binance's application for a crypto custody license. In contrast, Binance achieved a crypto broker-dealer permit from Dubai regulators in July. Currently, Binance faces legal actions from the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission for alleged unauthorized exchange operations within the U.S.

The Closure of Binance Connect

In the past 24 hours, the market experienced a significant downturn following a brief upward trend observed in the preceding week, as outlined in the latest market analyses.

During this period, an astonishing 60,786 traders encountered liquidation, resulting in an aggregate liquidation volume of approximately $134.86 million USD.

Within these market fluctuations, a particularly notable liquidation event occurred on the Binance platform, specifically involving the ETHUSDT trading pair. This incident involved a substantial sum of $2.34 million USD.

A Binance spokesperson addressed the situation, highlighting the continuous evaluation of products and services to align with long-term strategic goals. Over the span of six years, Binance transitioned from an exchange to a global blockchain ecosystem, adapting strategies to match evolving market dynamics and user preferences.

 “Our continuous evaluation of products and services ensures the alignment of our resources with our long-term strategic objectives at Binance. Over the past six years, Binance has evolved from a mere exchange into a global blockchain ecosystem, encompassing diverse business segments. We remain agile in adapting our business strategy to cater to evolving market dynamics and user preferences.”

Today marks the closure of a significant chapter for Binance Connect—a well-established avenue for the buying and selling of cryptocurrencies associated with the Binance exchange.