Traditional and crypto investors both consider trading fees to be one of the biggest liabilities in investing on exchanges. It was no surprise that Binance’s founder and CEO Changpeng Zhao asked investors if they were interested in trading on the cryptocurrency exchange without fees. Despite the inherent risks, the answer was a clear yes.
Binance is the largest crypto exchange. It surpasses its closest competitor FTX by 10x for trading volume. Zhao is well-known for his ability to implement features based on feedback from the community. He reached out via Twitter to gauge investor sentiment about the total removal of trading fees.
@binance trading is free, but there are some issues, such as wash trading and VIP tiers. A thread Are you still interested in it? 1/4.
CZ Binance (@cz_binance), July 8, 2022
CZ highlighted some issues that 0-fee trading can cause, including wash trading. You can use wash trading to climb up to the VIP tiers of Binance.
CZ also stated that in order to bring 0-fee trading into the mainstream, Binance will need to implement many safeguards. These include detection tools to identify illegitimate trades. Each VIP tier comes with certain trading benefits, including lower trading fees. Brian Rast, a professional poker player, asked, “So, if there aren’t fees, why would you need VIP Tiers?”
CZ’s poll had over 30600 votes at the time this article was written. Around 65.5% of those surveyed were inclined to trade for no fees. CZ is open for the implementation of changes, regardless of any challenges that a new system might present:
Let’s take a look at the results of our poll. We listen to our users.
Related: Binance receives VASP registration from the Bank of Spain for its Spanish subsidiary
Binance is continuing to grow its roots around the globe as it continues to acquire registrations and operating licenses from regulators.
In keeping with its expansion streak, Binance’s Spanish subsidiary, Moon Tech Spain was registered as a VASP at Spain’s central banking on Thursday. CZ attributed this development to Binance’s intention to protect users.
Effective regulation is crucial for widespread adoption of cryptocurrency. To ensure that our platform is safest, most trusted in the market, we have made significant investments in compliance. We introduced AMLD 6 and 5 compliant policies and tools to help us comply.