Infini Union Discontinues Crypto Card Business Citing High Compliance Costs

Infini Union, a prominent player in the cryptocurrency space, has announced a strategic shift in its business operations. The company's co-founder, Christine, revealed on social media that Infini is ceasing its crypto card business targeted at individual users due to high compliance costs, thin profit margins, and operational complexities. This decision comes despite the fact that the business consumed roughly 99% of the company's resources. The strategic divestment of this segment is aimed at refocusing efforts on more profitable ventures.

Infini's new focus will be on wealth management and asset management services. The company's wealth management products currently offer an annualized return of approximately 5%, with deposit, withdrawal, and other related functions fully operational. This shift is part of a broader strategy to align with Infini's vision of a Web3 payment endpoint, which aims to provide a more efficient and cost-effective solution compared to the current off-chain settlement systems.

The current implementation of crypto cards in the market relies on complex off-chain settlement systems, resulting in high costs, lengthy processes, and a competitive disadvantage compared to the cost structure and user experience of Web2. This misalignment with Infini’s vision of a Web3 payment endpoint has led to the decision to discontinue the Infini Card services, including Global Card, Lite Card, and Tech Card. These services will be suspended from use and new applications starting immediately. However, core functions such as deposit, withdrawal, and Earn returns will remain unaffected and fully operational.

This strategic adjustment by Infini Union underscores the challenges faced by companies in the cryptocurrency sector, particularly in balancing compliance costs with profitability. The shift towards wealth management and asset management services reflects a broader trend in the industry, where companies are increasingly focusing on areas that offer more sustainable growth and higher returns. Infini's decision to divest from its crypto card business is a clear indication of its commitment to long-term success and alignment with its strategic vision.