Binance Pulls the Shutter Down on Its Fiat-to-Crypto Platform Binance Connect a Year After Launch

The company reportedly conducted a review of its service offerings and evaluated which ones were not bringing in the expected engagement.

Written by Radhika Parashar, Edited by Manas Mitul | Updated: 16 August 2023 21:25 IST

Binance Pulls the Shutter Down on Its Fiat-to-Crypto Platform Binance Connect a Year After Launch

Photo Credit: Reuters

Binance plans to keep its focus on projects that promise long term returns

Highlights

Binance Connect allowed merchants to process fiat-to-crypto payments
The platform was launched in March 2022
Binance Connect also had partners like Visa and Mastercard

Binance, reeling under the scrutiny from the US Securities and Exchange Commission (SEC), is taking measures to reorganise its business strategies. In a fresh development, the crypto exchange reportedly shut down its fiat-to-crypto platform Binance Connect on Wednesday. The platform was launched just a year ago in March 2022. Its main aim was to let retailers accept payments in the form of cryptocurrencies. The exchange plans to keep its focus on projects that promise long term returns.

“At Binance, we periodically review our products and services to ensure that our resources continue to be focused on core efforts that align with our long-term strategy. We consistently adapt and modify our business approach in response to changing market and user needs,” a CoinTelegraph report quoted a company spokesperson as saying.

The move was also confirmed by Biswap, a decentralised exchange built on Binance's BNB Chain, on X (formerly Twitter).

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Dear Biswappers,

The Biswap team keeps abreast of the latest DeFi news and aims to inform you right away.

After a thorough consideration, @binance has made a difficult decision to disable @Binance_Connect on 15 August due to its provider closing the supporting card payments… pic.twitter.com/HcooyLn4sg
— Biswap (@Biswap_Dex) August 15, 2023

Binance Connect used to let its users process fiat-to-crypto payments that bridged the gap between crypto and traditional finance. The platform had listed 50 cryptocurrencies at the time of its launch and had partners like Mastercard and Visa.

After promising crypto projects like FTX and Terra collapsed last year, community members were left high and dry. This could have led to a reduction in crypto-friendly retailers processing payments via cryptocurrencies.

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The company has retracted services previously as well because of various reasons. In May last year, for instance, the exchange disabled its derivatives services in Spain because the authorities there reportedly believed that such offerings triggered operational complexity for investors and exposed them to the risk of losing more than what they had invested.

Binance has been under increased regulatory scrutiny in the US, too. The crypto exchange is in the crosshairs of the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC). For now, Binance has filed for a protective court order against the US SEC, claiming that the regulator's requests for information in its ongoing case against the exchange have been “overbroad” and “unduly burdensome.”

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Further reading: Cryptocurrency, Binance, Bitfinity, Crypto Exchange, Binance Connect

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More