Binance shuts down its crypto merchant payment platform after nearly 2 years

Temitope Akintade
Binance Connect allowed merchants to accept payments in crypto
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World’s largest crypto exchange, Binance has announced that it will be shutting down the services of its regulated buy-and-sell crypto arm, Binance Connect.

This announcement was made on Tuesday by a spokesperson in an email to CoinTelegraph. According to the spokesperson, the decision to shut down Binance Connect was taken as part of Binance’s periodic review of its products and services. The exchange continually adjusts its business strategy to align with evolving market demands and user preferences.

“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. 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.”

Binance

However, in an announcement posted on X (formerly Twitter) on Tuesday, Biswap, a decentralised exchange that is based on the BNB Chain said Binance made the “difficult decision” to disable Binance Connect “due to its provider closing the supporting card payments service.”

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It is noteworthy that this is coming a few months after Binance lost the support of Paysafe Solutions, its euro banking partner. From September 25, 2023, Paysafe Solutions will stop offering support for the Single Euro Payment Area (SEPA) to Binance. 

According to reports, the move followed concerns raised by the Financial Conduct Authority, the UK’s financial regulator, over Binance’s use of the country’s payment network.

What was Binance Connect?

launched on March 7 2022 as Bifinity, Binance Connect allowed merchants to accept payments in crypto. In an effort to help companies become “crypto-ready”, the service supported 50 cryptocurrencies and all major payment methods, including Visa and Mastercard.

Binance Connect

The service acted as a fiat-to-crypto payments provider connecting crypto firms with the traditional finance system. Binance Connect also served as the fiat-to-crypto on-ramp provider for the firm’s self-custody Trust wallet.

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Recall that Binance has had a phase of upheavals with financial services providers and regulators recently. This month, Binance Australia suspended fiat services, citing an issue with a third party. 

A few weeks ago, the Nigerian Securities and Exchange Commission (SEC) declared Binance activities in the country as illegal. Earlier in June, German regulators rejected Binance’s crypto custody license request. 

Also, the global crypto exchange is currently engaged in litigation with both the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission on allegations of operating an unlicensed exchange in the United States.


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