Binance, the world’s leading centralized crypto exchange, has announced the discontinuation of its crypto payment infrastructure, Binance Connect, citing “evolving market and user demands.”
In an official statement, Binance expressed, “We routinely assess our offerings to ensure our focus remains on pivotal initiatives that resonate with our overarching vision.”
Although Binance remains a dominant player in the crypto sphere, recent data indicates a potential shift in its market stronghold. CoinGecko’s analysis revealed a staggering 52.4% drop, amounting to US$823.9 billion, in Binance’s trading volume from Q1 to Q2 2023. This decline contrasts with a combined US$270.8 billion decrease across the other top ten exchanges during the same period.
CoinGecko’s insights further suggest a diminishing market share for Binance, which dipped to 51% in June 2023 from 61% in March. The report posits, “Binance’s sub-60% market share throughout Q2 hints at its diminishing dominance, especially as regulatory scrutiny intensifies.”
Adding to Binance’s challenges, BAM Trading and BAM Management, the entities behind BinanceUS, recently sought legal protection against the U.S. Securities and Exchange Commission (SEC). The SEC had previously accused Binance, its U.S. counterpart, and CEO Changpeng Zhao of potential securities law breaches.
In their legal documentation, BAM labeled the SEC’s discovery demands as “excessive” and “overreaching,” emphasizing the irrelevance of many requested communications to customer assets. BAM has proposed limiting SEC interrogations to specific personnel, excluding top executives like the CEO and CFO.
Biswap, a decentralized exchange on Binance Smart Chain, publicized the impending shutdown of Binance Connect, slated for August 16, 2023. They attributed this decision to Binance’s strategic pivot towards its foundational operations.
Binance Connect, previously known as Bifinity, was introduced in March 2022. It facilitated merchants in accepting crypto payments, supporting a broad spectrum of 50 cryptocurrencies and major payment channels like Visa and Mastercard. Over the past year, Binance Connect had forged partnerships with wallet providers like SafePal and Trust Wallet, aiming to bridge traditional finance with the crypto realm.
