Binance Unveils Bifinity
Binance announced the news of the launch in an official press release on Monday (March 7, 2022), which was established in 2021. The cryptocurrency exchange giant said that merchants will be able to seamlessly integrate Bifinity’s application programming interface (API) to enable their businesses to start accepting crypto payments.
Also, Binance’s new payments technology platform supports over 50 cryptocurrencies, along with all major payments methods including Mastercard and Visa. Furthermore, the announcement noted that payment processing fees will be low for merchants using Bifinity.
As part of plans to expand access to crypto globally, Bifinity partnered with two companies— Paysafe, a leading payments platform, and Checkout.com, a global online payments firm. This is expected to increase user engagement in cryptocurrency buying and selling.
The partnerships will also help Bifinity to improve its “on-ramp processing infrastructure” which integrates robust fraud detection. In addition, the collaboration with Paysafe will help the Binance subsidiary to expand operations into Latin America.
Commenting on the launch, Helen Hai, the president of Bifinity, said:
“As the crypto and the Web3 economy continue to grow, we see greater demand to build improved fiat-to-crypto on-ramps to bridge the gap between the traditional finance industry and the decentralized and centralized crypto economy. At Binance, the vision is to increase the freedom of money globally. With the launch of Bifinity, we aim to accelerate mass crypto adoption.”
Bifinity Partners With Eqonex
Bifinity also struck a strategic partnership with the Nasdaq-listed digital assets firm Eqonex, which will see Bifinity advance a $36 million convertible loan to the crypto company, according to a separate announcement by Eqonex. The loan has an 18-month maturity, with an initial conversion price of $1.89.
Bifinity will also have the right to appoint Eqonex’s CEO, chief financial officer (CFO), and chief legal officer, and nominate two seats on Eqonex’s board of directors.
Chairman of Eqonex, Chi-Won Yoon, said:
“This transaction marks the next logical step in our company’s evolution, representing an important opportunity to grow our footprint and expand our regulated offerings for the benefit of our customers and shareholders.”
“Bifinity’s cutting-edge technology and extensive experience in building, operating, and marketing digital platforms and products will help drive the growth and scale of our ecosystem, starting with Digivault, our custody solution, our asset management business, and institutionally-focused products on the exchange.”
UK’s FCA Expresses Concerns Over Bifinity Partnership
Meanwhile, the UK regulatory watchdog, the Financial Conduct Authority (FCA) has responded to the announcement of the partnership between Bifinity and Eqonex. Digivault is a crypto business under Eqonex and registered by the FCA.
The regulator in a statement noted that the deal may have allowed entities that are part of the Binance Group and not regulated by the FCA, to become beneficial owners of Digivault. However, the financial watchdog said that the agency did not have the authority to assess the new beneficial owners before the transaction was completed.
The only entity within the wider Binance Group and under the regulatory purview of the FCA is Binance Markets Limited, which the UK agency issued warnings against in June 2021. Later in August, the FCA stated that Binance Markets Limited will not conduct regulated activities without the prior consent of the agency.
The FCA also went a step further to state that it can suspend or terminate a company’s cryptoasset registration if the firm fails to comply with the obligations under the agency’s Money Laundering Regulations (MLRs).
Meanwhile, the FCA said that its concerns about Binance Markets Limited still exist, until issues are resolved.