According to a new announcement, Binance plans to make changes to its zero-fee Bitcoin trading program. A similar decision taken earlier in March led to a 90% drop in transaction volume.
Binance repeats the previously crashing decision
Binance announced on August 24 that its zero-fee Bitcoin trading will be updated from September 7. The leading exchange plans to make changes to BTC/TUSD spot and margin transactions. Previously, users did not pay transaction fees when trading BTC with TUSD pairs. According to the update, a standard participation fee will now be applied based on the user’s VIP level. According to the official announcement:
The corresponding trading volume in the BTC/TUSD spot and margin trading pair will be taken into account in the VIP tier calculation and in all Liquidity Provider programs. Additionally, BNB discounts, referral discounts and other fee adjustments will continue for BTC/TUSD spot and margin trading volumes.
It looks like Binance is ending its zero-fee Bitcoin trading program for TUSD. A similar decision taken in March led to a 90% drop in transaction volume…
What does the BTC/TUSD decision mean for the cryptocurrency market?
Binance could unintentionally trigger another sell-off by changing its free Bitcoin trading program for BTC/TUSD. Crypto data provider Kaiko revealed on March 27 that Bitcoin trading volume for the BTC-USDT pair dropped by 90% after Binance ended trading of zero-fee Bitcoin for all trading pairs except TrueUSD (TUSD).
According to the latest data, BTC/TUSD and BTC/USDT pairs are among the busiest Bitcoin trading pairs. However, the trading volume with Tether (USDT) is also declining. One of the reasons behind this is linked to the Binance exchange’s decision to end support for BUSD. Another catalyst is that TUSD can now only be used for zero-fee Bitcoin trading.
The leading exchange is currently focusing on the less well-known FDUSD instead of the previously unpopular TUSD. However, the trading volume of FDUSD is too low to even be among the top 10 Bitcoin trading pairs. This will likely lead to another drop in trading volumes, putting more pressure on the market. The market cap of FDUSD currently stands at just $324 million.
Binance ends card services in Latin America and the Middle East
cryptocoin.com As we reported, Binance will suspend crypto debit card services in Latin America and the Middle East from August 25. Card services will end permanently from September 21. This move provides new use cases for Binance Pay.
