Binance, facing scrutiny from the US Securities and Exchange Commission (SEC), is implementing measures to reorganize its business strategies. In a recent move, the crypto exchange has reportedly shut down its fiat-to-crypto platform, Binance Connect, on Wednesday. The platform, which was launched in March 2022, aimed to enable retailers to accept payments in cryptocurrencies. Binance plans to refocus its efforts on projects with long-term returns.
“At Binance, we regularly review our products and services to ensure that our resources are focused on core initiatives that align with our long-term strategy. We continuously adapt and adjust our business approach in response to changing market and user needs,” stated a company spokesperson, according to a CoinTelegraph reportquoted.
The shutdown was also confirmed by Biswap, a decentralized exchange built on Binance’s BNB Chain, on X (formerly Twitter).
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 allowed users to process fiat-to-crypto payments, bridging the gap between cryptocurrencies and traditional finance. At the time of its launch, the platform listed 50 cryptocurrencies and had partners like Mastercard and Visa.
Following the collapse of promising crypto projects like FTX and Terra last year, community members suffered. This may have resulted in a decline in crypto-friendly retailers accepting payments in cryptocurrencies.
The company has previously discontinued services due to various reasons. For example, in May last year, the exchange disabled its derivatives services in Spain because the authorities believed that such offerings posed operational complexity for investors and exposed them to the risk of losing more than their initial investment.
Binance has also faced increased regulatory scrutiny in the US. The crypto exchange is currently under investigation by the US Securities and Exchange Commission (SEC) and the US Commodity Futures Trading Commission (CFTC). Binance has filed a protective court order against the US SEC, alleging that the regulator’s information requests in their ongoing case have been excessively broad and burdensome.
Denial of responsibility! TechCodex is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
