Excitement is Building Around Bifinity. But Is Regulatory Oversight Needed?

3 mins read

Listen to this article:

Binance, the world’s largest cryptocurrency exchange in terms of market cap, has recently revealed its official fiat-to-crypto payments provider, Bifinity. The new provider will supply APIs for merchants and businesses looking to get their establishments crypto-ready, all while making the crypto market more accessible.

The Bifinity platform will offer more than 50 cryptocurrencies and accept payment methods like VISA and Mastercard as of its launch. Not only this, but Bifinity will partner with other established groups in the crypto space, such as Safepal, Eqonex, and Zilliqa, to streamline these offerings even more.

This announcement is more monumental than it might initially appear. With the metaverse and Web 3.0 exploding in popularity last year, accessible ways into the cryptocurrency industry are increasingly necessary.

A Global Approach

While Coinbase and similar crypto exchanges have offered fiat-to-crypto solutions for some time, it’s a little different now that Binance is involved. After all, Coinbase focuses its solutions on the United States and EU for now. That, and the San Fransisco-based platform is relatively limited in terms of crypto selection, and it charges higher fees than many of its contemporaries.

Binance, on the other hand, reaches countries all around the world and supports all types of cryptocurrencies. Even if the Bifinity service won’t support all of these assets at its launch, it enables users to convert their fiat to crypto with next to no issue. That crypto can then be used to invest in Binance’s various supported assets, including NFT and metaverse-related ones.

If Web 3 projects want to bring on the mainstream, accessibility is the number one way. Imagine a world where users can buy Axies with a debit card and not think anything of it. 

Not only is support for cryptocurrencies necessary, but positive industry optics as well. If businesses can easily implement crypto payments solutions, they’re bound to spread positivity around. From there, other companies might get involved, which will bring in even more customers, and so on.

But while we’re discussing optics, it’s important to note that Binance isn’t the most reliable company in the crypto space regarding regulatory policies and a clean background. That negligence might come into play here.

Binance’s Questionable History

Binance, despite its massive presence, has always struggled with compliance. In September 2021, the United States government began investigating the exchange’s potential tax fraud, insider trading, and money laundering.

In terms of the Bifinity launch, the Financial Regulatory Body (FCA) is suspicious of Binance owning an FCA registered company in Eqonex. Speaking to Gokhshtein Media regarding the matter is Zoltan Kormanyos, legal head at the international broker comparison website BrokerChooser, stating:

“FCA raised concerns back in 2021 that Binance is not capable of being effectively supervised due to the lack of information and transparency. FCA also confirmed that Binance is not permitted to do any regulated activities in the UK without the prior written consent of the FCA. The FCA emphasized that these concerns are still in place after the Eqonex deal.”

Even with these suspicions in place, the launch of Bifinity might still incentivize other, more reliable groups to get involved in the crypto space. In May 2021, the Gemini cryptocurrency exchange published a report revealing that 63% of United States adults are ‘crypto-curious,’ or those who don’t hold crypto but are planning to do so in the future. This is US interest alone. Imagine the interest that globally reaching crypto companies can generate.

However, with increased accessibility comes regulatory concerns — and not just for Binance. Regulators worldwide need policies that can protect new users from the nascent space. Whether one agrees with it or not, progressions like the recent Biden order are what’s necessary.

Institutional investors agree, with digital asset fund manager Nickel Digital Asset Management revealing that 49% across the world are waiting for better regulation to get involved in cryptocurrencies.

You may also like

Recent Articles