Binance Connect Bids Adieu On August 16 As Focus Sharpens Amid Regulatory Wave

Key Points:

• Binance’s licensed arm, Binance Connect, is to cease crypto trading on August 16 due to the card service provider’s closure.
• The decision follows Binance’s adaptation to changing markets and user needs.
• This move aligns with Binance US’s effort to limit the SEC’s probe amid rising regulatory scrutiny.

In an unexpected development, Binance has officially confirmed that it will be discontinuing its licensed cryptocurrency trading division, Binance Connect, effective August 16. The closure was disclosed by a Binance representative on August 15.

Binance Connect, which operated as the regulated fiat-to-crypto buy-and-sell arm of the Binance exchange, will shut its doors after a brief stint in the market. The decision was confirmed via an email exchange with a spokesperson from Binance, as reported by Cointelegraph.

The announcement was followed by a tweet from Biswap, the decentralized exchange on the BNB Chain. Biswap conveyed that Binance had been compelled to take this step due to the cessation of card payment services by its supporting provider.

A Binance spokesperson explained the move, stating that the company periodically evaluates its offerings to ensure alignment with its long-term strategy.

Over the years, Binance has transitioned from being solely an exchange to evolving into a global blockchain ecosystem, diversifying its business lines to cater to changing market dynamics and user preferences.

Originally introduced on March 7, 2022, as Bifinity, Binance Connect was introduced as a conduit between the crypto industry and traditional financial systems, facilitating fiat-to-crypto transactions. The platform boasted support for 50 cryptocurrencies and accepted fiat payments through Visa and Mastercard.

This development coincides with Binance US’s recent efforts to restrict the reach of the US Securities and Exchange Commission (SEC) in its ongoing investigation, citing prior agreements.

Binance and its subsidiaries have been navigating heightened regulatory scrutiny, particularly in the United States, where it’s accused of offering unregistered securities alongside its competitor, Coinbase.

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