Binance, the world’s largest cryptocurrency exchange by trading volume, is shutting down its regulated fiat-to-crypto platform, Binance Connect, effective from today, 16 August.

The platform, which launched in March 2022, allowed users to buy and sell over 50 cryptocurrencies using fiat card payments such as Mastercard and Visa.

According to a report by Cointelegraph, the decision to close Binance Connect was confirmed by a Binance spokesperson in an email. The spokesperson said that the platform’s provider was closing the supporting card payments service, and that Binance was working on finding alternative solutions for its users.

Binance Connect, formerly known as Bitfinity, was a regulated platform that operated under the Electronic Money Institution (EMI) license of Contis Financial Services Ltd, a UK-based fintech company. The platform was available in over 30 countries, including the UK, Germany, France, Italy, Spain, and Poland.

The closure of Binance Connect is the latest setback for Binance, which has been facing increasing regulatory scrutiny and challenges in various jurisdictions. In recent months, Binance has received warnings or notices from regulators in the UK, Japan, Italy, Germany, Thailand, Malaysia, Singapore, and Hong Kong, among others. Some of these regulators have accused Binance of operating without proper authorization or offering unlicensed services.

Binance has also faced difficulties with its banking and payment partners. In June 2022, several UK banks and payment providers, including Barclays, Santander, NatWest, and Clear Junction, suspended their services for Binance customers. In July 2022, Binance announced that it would stop offering SEPA transfers (a common payment method in Europe) due to “events beyond our control”. In August 2022, Binance said that it would stop offering Faster Payments (a UK payment system) for GBP withdrawals.

In response to these challenges, Binance has been taking steps to improve its compliance and regulatory relations. The exchange has hired several former regulators and compliance experts to join its team. For example, in July 2022, Binance appointed Jonathan Farnell as its director of compliance. Farnell was previously the director of compliance at eToro UK Ltd. In August 2022, Binance hired Greg Monahan as its global money laundering reporting officer. Monahan was formerly a US Treasury criminal investigator.

Binance has also announced that it would limit some of its services for certain users. For instance, in July 2022, Binance said that it would reduce the maximum leverage for futures trading from 125x to 20x. In August 2022, Binance said that it would require all users to complete an intermediate verification process to access its products and services. The verification process involves providing personal information such as name, address, date of birth, and ID documents.

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