Binance, the world’s largest cryptocurrency exchange, announced that it has shut down Binance Connect (previously Bifinity), a part of the Binance exchange where users can buy and sell cryptocurrencies in a controlled way.
Binance Connect has posted a Notice of Service Termination. The notification says, “Due to strategic reasons, we announce the termination of all Binance Connect services on 16 August. We want to assure you that we are committed to making the transition as smooth as possible for all our partners.”
“We are required to retain user’s personal data that is processed according to the merchant agreement to comply with Anti Money Laundering laws. When the mandatory period for which we must hold the data has passed, we will delete it from our systems,” says the notice.
Binance Connect: Bridge between crypto & traditional finance
Binance Connect, launched on March 7, 2022, operated as a bridge between cryptocurrency companies and the traditional financial system, allowing users to use regular money to buy cryptocurrencies.
When it started, users could use it to buy and sell 50 different cryptocurrencies using methods like Visa and Mastercard.
The crypto exchange disabled the services on August 16 as they want to focus on its primary offerings and long-term goals, according to the company.
“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. In the last six years, Binance has grown from being an exchange to a global blockchain ecosystem with multiple business lines. We consistently adapt and modify our business approach in response to changing market and user needs,” a spokesperson told CoinDesk in an emailed statement.
Binance’s previous developments
The announcement comes a couple of months after Belgium’s Financial Services and Markets Authority (FSMA) issued an order to immediately cease its operation in Belgium.
The company also closed its Dutch operations in June since it could not meet registration requirements.
Further, the US Securities and Exchange Commission (SEC) accused the crypto exchange and its founder
Changpeng Zhao of operating an elaborate scheme to evade US federal securities laws.
Consequently, the SEC charged the cryptocurrency exchange and Zhao with 13 offences, including operating an unregistered securities exchange.
