Crypto exchange Binance has announced that it will be expanding its zero-fee trading promotion to include all TrueUSD (TUSD) trading pairs starting June 30th. According to a recent blog post, the company aims to benefit traders by offering zero maker fees on all TUSD spot and margin trading pairs. Previously, this promotion only applied to the Bitcoin (BTC)-TUSD pair. Additionally, users will be able to exchange stablecoins without fees during the promotional period.
This decision comes at an interesting time, as Binance is currently facing numerous legal challenges and regulatory scrutiny across various countries. The U.S. Securities and Exchange Commission (SEC) has sued Binance, along with its CEO Changpeng “CZ” Zhao, and Binance.US for violating federal securities laws. Furthermore, the company is also under investigation by French authorities for “aggravated money laundering.” As a result of these legal pressures, Binance has decided to halt operations in the Netherlands, cancel plans for permissions to operate in the United Kingdom, and end its registration with Cyprus’ securities regulator.
Despite these setbacks, Binance appears determined to increase the prominence of TUSD trading on its platform. TUSD, the fifth-largest dollar-pegged stablecoin, is issued by a crypto firm called ArchBlock (formerly known as TrustToken). Interestingly, reports have surfaced suggesting that crypto billionaire and Tron founder Justin Sun might be involved with TUSD. These claims have been denied by the token issuer.
Binance’s focus on promoting TUSD on its platform started after the New York state regulator forced issuer Paxos to mint the Binance-branded stablecoin BUSD in February. Currently, at least 90% of the stablecoin’s $3.1 billion total market capitalization is held by the exchange’s crypto wallets, according to data provided by Arkham Intelligence.
With the expansion of this promotion to all TUSD trading pairs, Binance is effectively pushing its own stablecoin further into the spotlight. Nevertheless, it remains to be seen whether these promotional efforts will be enough to maintain the exchange’s position as the world’s largest crypto platform, especially in light of the ongoing legal challenges and regulatory scrutiny faced by the company.
In conclusion, while Binance’s decision to expand its zero-fee trading promotion to all TUSD trading pairs appears to be a strategic move to boost adoption for its own stablecoin, it also raises questions about the company’s long-term viability amidst increasing regulatory pressure and legal challenges. Only time will tell whether Binance’s promotional efforts can translate into sustained growth, or if its current troubles will spell the end for the world’s largest crypto exchange.
Source: Coindesk
