- Binance, while speaking to many news outlets, said they would close down their crypto payment system. Apparently, the world’s largest exchange is going through some restructuring.
- As such, they discovered Binance Connect didn’t fit into their long-term goals. Hence, they are closing down the payment system.
Binance is the largest crypto exchange worldwide, although it is not only a crypto exchange anymore. Binance is also a blockchain now with their Binance Smart Chain (BSC). They even provide payment solutions such as Binance Connect. Recently, the crypto company said they will close down their crypto payment system.
Binance Close Down Crypto Payment System
- Binance Connect, the regulated buy-and-sell crypto arm of the Binance exchange, will close down after a year at the crypto exchange. The crypto exchange confirmed this new development while speaking with the press. Apparently, Binance Connect launched on March 7, 2022. At the time of its launch, the service’s name was Bifinity.
- Furthermore, this service was a fiat-to-crypto payments provider connecting crypto firms with the traditional finance system. In other words, it was to help many crypto enthusiasts make payments for cryptos using fiat. The influence of this service soon spread out as many crypto firms integrated it into their service.
- During the time of its launch, this crypto payments system supported a whopping 50 cryptocurrencies. This included top cryptocurrencies like Bitcoin and Ethereum. On the other hand, Visa and Mastercard received support as fiat payment providers. The crypto payment system went on to have an all-around success. But Binance suddenly announces the closure of this service.
What is the Reason Behind the Shutdown?
- While speaking to the press, Binance highlighted some reasons for closing down. Apparently, the crypto exchange wants to focus on its core services before any other thing. Binance said they made periodic reviews of their products and discovered the crypto payment service wasn’t in their long-term plan.
- Furthermore, Binance walked through its evolution from being a crypto exchange to an overall blockchain service provider. So, they constantly review their service to see which one isn’t in their plans anymore. Unfortunately, Binance Connect fell out of favor, and they decided to close it down.
Crypto Firms Affected by the Crypto Payment System Shutdown
- The new development by Binance to close down its crypto payment system is quite devastating for many crypto firms. Apparently, a lot of them depend on this provider to enable their users to make payments in fiat.
- One of the crypto exchanges affected by the new development is BNB Chain-based decentralized exchange Biswap. Biswap made a tweet on Twitter (now X) alerting their users about the new development. With the new development, it means many of these crypto firms will look for other options to support their service.
Conclusion
In a new development, Binance announces closing down its crypto payment system after a year of operation. Their Binance Connect went live in 2022 and will close down in 2023. Binance cited reasons for the closure. Apparently, the crypto firm says the payment system no longer fits into their long-term plans.
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