Binance, the world’s largest cryptocurrency exchange, is quietly shutting down its payment service dubbed Binance Connect. Although there is no official message on the website, the news has been shared by foreign media.
Released March 2022 as Bifinitythe service intended to work with more than 50 cryptocurrencies and traditional payment methods, such as credit cards.
In addition to a lack of grip, the reasons for the closure may be related to regulatory pressure from UK regulators and, more recently, declining profits.
Binance Connect has been under pressure since last year
One of the main names behind Binance Connect was Joe Johnson, brother of Boris Johnson, former Prime Minister of England. However, Jo retired in December last year.
According to information from the time, Binance was pressured by regulators. Months earlier, one of its biggest rivals, FTX, went bankrupt and several governments raised concerns about other companies in the industry, including Binance.
As early as 2023, Binance was sued by both the CFTC and the SEC. Since then, Changpeng Zhao’s brokerage has exposed budget cuts, including mass layoffs. Therefore, the closure of Binance Connect may also have been an economic decision.
Binance announces end of Binance Connect
Apart from Binance not posting any termination notices on its official website, Binance Connect social networks have not been active since September last year. That is, the company seemed to have no traction even before the brokerage industry faced its biggest regulatory challenges.
In a note shared by CoinDesk, Binance treated the decision as an assessment of its products and services, noting that the company has experienced major expansion since launch but needs to adapt to changes in the market.
“We periodically review our products and services to ensure that our resources remain focused on our core efforts in line with our long-term strategy. Over the past six years, Binance has grown from an exchange to a global multi-industry blockchain ecosystem. We are consistently adapting and adapting our approach to business in response to market changes and user needs.”
Finally, it seems that few users will miss Binance Connect, after all, the service has never enjoyed widespread adoption. Either way, it’s a sign that the industry is far from peaking, even with Bitcoin up 80% for the year.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
