Understanding Bifinity: Your Gateway to Secure Fiat Transactions

Main Takeaways

• Bifinity UAB is an audited legal entity that exists to unlock fiat on/off-ramps for a number of Binance users, particularly those in Europe.

• Any user wishing to use a fiat service available on Binance and facilitated via Bifinity has to agree to Bifinity’s terms and conditions and meet a set series of identity verification and compliance checks. 

• Bifinity operates in strict accordance with the Fifth Anti-Money Laundering Directive (AMLD5), the EU’s most rigorous framework to date in terms of combating money laundering, and which sets the gold standard expected by traditional payment partners in Europe.

• Fully registered as a VASP in Lithuania, Bifinity also follows Lithuanian Anti-Money Laundering (AML) legal requirements.

• As a result, Bifinity ensures secure, compliant and auditable fiat transactions — both for Binance’s users and its fiat payment and bank partners. 

Bifinity is fully registered as a VASP and compliant in Lithuania, and exists to facilitate the provision of secure and compliant fiat transactions for Binance users in Europe and elsewhere.

As the cryptocurrency landscape continues to evolve, understanding the intricacies of what counterparties you use and interact with becomes increasingly essential.

One such entity is Bifinity UAB, a private limited company registered with Lithuania’s Financial Crime Investigation Service (FCIS) and Registry of Legal Entities in accordance with all applicable laws and regulations of the Republic of Lithuania (“Bifinity”). 

Bifinity plays a key role for people interacting with fiat services on Binance, particularly for those in Europe, but doesn’t seem to be that well understood by most regular users or even industry experts. So, we felt it would be helpful to share some insights in this blog. 

Our goal is to provide you with a comprehensive understanding of Bifinity as an entity — how it operates, what its relationship with Binance is, and the very strict compliance measures it follows. 

What is Bifinity?

Bifinity is a legal entity that primarily focuses on facilitating fiat transactions for Binance.com users in the European Economic Area (EEA). 

Fully registered in Lithuania as a Virtual Asset Service Provider, Bifinity enables a secure and compliant way for users in relevant jurisdictions to use fiat services on Binance, such as transactions involving credit cards or SEPA (Single Euro Payments Area) credit transfers. This is thanks to Bifinity’s agreements with traditional payment partners and banks across the financial system.

When you buy crypto with euros via a credit card or withdraw euros from your Binance wallet to your bank account, Bifinity plays an important role in making these transactions possible. As part of this process, anyone engaging with the fiat services facilitated by Bifinity must become a user of Bifinity by agreeing to its terms and conditions and meeting all its KYC (“know your client”) verification requirements.

How Bifinity’s Compliance Measures Unlock Fiat Transactions

Bifinity is able to help users access fiat channels because it has established relationships with traditional payment providers, which have been secured, in part, because of Bifinity’s compliance measures, set up to meet the EU’s Fifth Anti-Money Laundering Directive (AMLD5).

AMLD5 outlines robust Anti-Money Laundering (AML) checks and Know Your Client (KYC) requirements, representing the gold standard expected by traditional payment partners in Europe. As mentioned, Binance users wanting to access the  fiat channels and associated services offered by Bifinity’s payment and banking partners have to agree to Bifinity’s terms and conditions and fulfill a series of checks ensuring compliance with AMLD5 as a baseline, as well as additional Lithuanian AML requirements. 

Given that all the fiat payment partners associated with Bifinity across Europe are licensed to provide the corresponding fiat service, these layers of checks ensure they have the confidence to facilitate fiat transactions for users with the knowledge that they’ve been verified according to an AMLD5 standard.

Ultimately, Bifinity’s setup is designed to provide a reliable and compliant way for Binance users to conduct fiat transactions within the Binance ecosystem. Recognizing the distinct requirements for fiat and crypto activity, Bifinity focuses solely on partnering with fiat services providers to facilitate fiat transactions and aims to help users move seamlessly between the two worlds.

Regular Financial Audits

Given its regulatory requirements, Bifinity is also audited by reputable audit companies, with publicly available financial statements on countries' Register of Legal Entities. Importantly, auditors issued what are known as “Unqualified Opinions'' regarding Bifinity’s 2021 and 2022 financial statements. An Unqualified Opinion, often called a "clean opinion," is the most favorable audit outcome. 

It signifies that the auditor has found the organization's financial statements to be free of material misstatements and in compliance with applicable accounting standards. It also indicates that the financial statements are presented fairly, providing a true and fair view of the organization's financial position and performance.

Receiving an Unqualified Opinion demonstrates the organization's commitment to transparency, accuracy, and compliance with accounting standards. It helps to build trust and confidence among investors, shareholders, and other stakeholders.

Final Thoughts

Bifinity operates as a secure, compliant and audited entity facilitating the connection of fiat transactions and the developing world of cryptocurrencies. 

By adhering to stringent AMLD5 regulations and additional Lithuanian requirements, Bifinity assures users and payment providers that its operations are compliant and auditable, thereby establishing trust within the wider ecosystem. It primarily facilitates transactions for Binance users in Europe and thereby promotes wider accessibility to compliant fiat-to-crypto and crypto-to-fiat conversions. 

As the cryptocurrency realm matures, entities such as Bifinity continue to play a crucial role in enhancing security, broadening access, and ensuring compliance in transactions, ultimately contributing to the mainstream acceptance of digital assets across the globe.

Bifinity UAB is a Lithuanian private limited company with registration number 305595206, having its registered office at Lvivo st. 25-104, Vilnius, Lithuania, and which is registered with the Financial Crime Investigation Service (FCIS) and Registry of Legal Entities in Lithuania as a Virtual Currency Exchange Operator and Depository Virtual Currency Wallet Operator in accordance with the applicable laws and regulations of the Republic of Lithuania (“Bifinity”). 

Further Reading

• Biggest Misconceptions About Crypto

• Finding Focus With the Binance Compliance Team

• How Binance Invests In Compliance