Binance Charges Spot Bitcoin Trading Fees Again, Minus Only TUSD-BTC

Key Points:

• Binance removed almost all the no-fee trading pairs from its platform after nine months, keeping the promotion only for the TUSD-bitcoin pair.
• This decision by Binance could cause the centralized cryptocurrency exchange to lose market dominance. However, this is expected to be short-lived.
• The exchange’s preference for TUSD is reflected in the retention of incentives for the TUSD-BTC pair.

A spokesperson for crypto exchange Binance has confirmed that the company has started charging spot bitcoin trading fees after reducing spot bitcoin trading fees to zero last summer. According to its website, the exchange currently charges a 0.1% fee for spot bitcoin transactions, minus only TUSD-BTC

“The move to reduce trading fees to zero was a promotion that lasted for six months. And the company’s communication to users last July indicated the plan was in effect until further notice.”

A spokesperson for Binance said on Wednesday.

However, users can still trade the TUSD-BTC trading pair for free on Binance.

According to the report, this free approach has proven to work for Binance. Clara Medalie, director of research at Kaiko, said that as of last week, 61% of trading volume on Binance was Bitcoin transactions with no fees.

Binance just eliminated most zero-fee #BTC trading.

This is a pretty big deal. Zero fees helped them gain a massive +20% market share since July. pic.twitter.com/nhDqz6sZxH

— Clara Medalie (@Clara_Medalie) March 22, 2023

Medalie emphasized that this measure has helped this exchange increase its market share to 72% from 50% last July compared to most liquid exchanges. However, Medalie believes that Binance could lose market share after eliminating most of the zero-fee transactions, but this could be short-lived.

Recently, Binance has been focusing on enhancing TUSD’s position after the regulatory authorities cracked down on its BUSD stablecoin issuer, Paxos.

According to on-chain data, BNB is looking to integrate TrueUSD (TUSD) and is considering support for several decentralized stablecoins. The exchange minted 180 million TUSD between February 16 and February 24, demonstrating an effort to meet its stablecoin demand despite regulatory challenges.

TrustToken, the operator of TUSD, a stablecoin pegged to the US dollar, has partnered with BNB since June 2019, allowing Binance to buy TUSD with no fees and exchange it for fiat currency. However, Binance automatically liquidated TUSD to BUSD to increase market share in September 2022, but following the ban on BUSD, this exchange started minting new TUSD to meet its stablecoin requirements.

The stablecoin market weathered turmoil earlier this month when regulators shuttered several US banks with close ties to crypto companies after experiencing deposit difficulties.

The largest cryptocurrency exchange reintroduced trading with USDC, USDP, and TUSD stablecoins last week after banishing them from the platform and automatically converting deposits to BUSD in a controversial move last September.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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