Binance, one of the largest cryptocurrency exchanges in the world, has recently announced the expansion of its free trading options for the spot and margin trading pairs of the First Digital USD (FDUSD) stablecoin. The trading pairs include popular digital assets such as BNB, Dogecoin, Chainlink, Ethereum, Solana, and XRP. Users will enjoy zero maker and taker fees for these pairs starting from December 8th for an undisclosed period.
While the free trading option sounds attractive, it’s important to note that Binance has clarified that these pairs will be excluded from BNB fee discounts, rebates, and other adjustments. Binance reserves the right to disqualify trades that are deemed to be wash trades or involve illegal bulk account registrations. They will also closely monitor trades that display attributes of self-dealing or market manipulation.
This move by Binance is part of the exchange’s continuous efforts to encourage its users to utilize the FDUSD stablecoin. Just last week, Binance announced that it would phase out support for its other stablecoin, Binance USD (BUSD), by December 15th. Binance is urging users to convert their BUSD holdings into the new FDUSD stablecoin before the end of the year, as BUSD withdrawals will no longer be available after December 31st. Any remaining BUSD balances will be automatically converted to FDUSD.
Binance’s decision to discontinue support for BUSD stems from regulatory issues faced by the stablecoin. Earlier this year, the issuer of BUSD, Paxos, suspended stablecoin issuance due to scrutiny from U.S. regulators. The U.S. Securities and Exchange Commission (SEC) sent a Wells Notice to Paxos, classifying BUSD as a security. Although both Binance and Paxos have vehemently rejected this classification, the crypto community has become skeptical of BUSD, leading to a significant decrease in its circulating supply.
In response to the decline of BUSD, Binance has been pushing FDUSD as a viable alternative. The exchange has introduced new products for FDUSD and offered incentives to encourage its use. However, it’s worth noting that FDUSD’s circulating supply remains relatively low, with less than 1 billion in circulation and limited availability on only a few crypto exchanges.
Binance’s expansion of free trading options for the FDUSD stablecoin and other popular digital assets demonstrates the exchange’s commitment to promoting the use of stablecoins and providing more trading opportunities for its users. While the move away from BUSD may raise concerns about regulatory issues, Binance remains determined to offer alternatives that meet the needs of its growing user base. As the cryptocurrency market continues to evolve, it’s essential for exchanges like Binance to adapt and provide innovative solutions to ensure a seamless trading experience for all.
Leave a Reply