"Hmmm maybe that's the reason for doing that."
Today we were surprised by the news about Binance Connect, the buy-and-sell cryptocurrency arm of the Binance exchange which is reported to be closing its services on August 15, 2023.
It was revealed by BNB Chain based decentralized exchange Biswap, Binance's decision to disable Binance Connect was very difficult following its providers shutting down support card payment services.
It is common knowledge that Binance will review products and services at scale to ensure resources remain focused on core efforts that align with their long-term strategy.
Launched on March 7, 2022, Binance Connect formerly known as Bifinity has acted as a fiat to crypto payment provider that connects digital asset exchanges with traditional financial systems.
On the same day, the Financial Conduct Authority (FCA) of the United Kingdom (UK) expressed its concerns about Bifinity providing convertible loans* to Nasdaq-listed crypto investment firm Eqonex.
*Will either be repaid or, in most cases, converted to equity at a future date
Binance Australia suspended fiat services and then in June 2023, German regulators rejected Binance's request for a crypto custody license but it has obtained the license with Dubai regulators.
However, it should be noted that Binance is currently involved in litigation with the Securities and Exchange Commission (SEC) and the Futures Trading Commission (CFTC) for allegedly operating an unlicensed exchange in the United States (US).
