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Binance forced to close its crypto payments service

Thu 17 Aug 2023 ▪ 3 min of reading ▪ by Fenelon L.
Getting informed Payment

Binance, a leading crypto exchange, is surprisingly shutting down its crypto payment service, Binance Connect (formerly Bifinity), barely a year after its launch. Is this a strategic retrenchment tactic or a pressing regulation?

Several cryptos including Bitcoin and US dollars listed on Binance

Binance Connect pulls the plug barely a year after launch

The current period poses significant challenges for Binance, one of the world’s largest crypto exchange platforms, which is facing regulatory compliance issues in several jurisdictions. In the US, the Binance US branch faces the imminent threat of liquidation.

Against this backdrop, a new announcement is attracting attention: the Exchange has just taken the decision to terminate its crypto payments service, Binance Connect. This resolution comes barely a year after the launch of the service.

Indeed, in March last year, Binance introduced the Binance Connect service, previously known as Bifinity. This ambitious initiative aimed to prepare traditional financial institutions to integrate the crypto world, accompanying them in their transition.

The service offered merchants the possibility to accept crypto payments, making available a range of 50 digital currencies as well as the major payment methods, including Visa and Mastercard.

Strategic refocusing for a solid future?

Today, August 16, the Binance Connect service is bowing out, while the Exchange is realigning its strategy, focusing on its core products and long-term objectives.

A spokesperson spoke to Coindesk via an emailed statement:

We regularly review our products and services, ensuring that our resources remain focused on the fundamentals aligned with our long-term vision. Over the past six years, Binance has gradually evolved from a simple exchange platform into a global ecosystem based on blockchain technology, embracing various business sectors. Our business approach is constantly adjusting and transforming to meet evolving market and user needs.

In short, Binance has opted to abandon Binance Connect in order to refocus its resources on its core strategic focus. At the same time, the CZ-based platform is facing a legal battle with the SEC. This quarrel, dating back to June 2023, sees the SEC accusing the Exchange and its founder of potential violations of securities laws.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.