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Popular cryptocurrency exchange Binance has announced its move to zero-fee bitcoin trading from BUSD to TUSD on March 2022.
Binance stated that users would continue to benefit from having no maker or taker costs while exclusively trading bitcoin on the BTC/TUSD spot trading pair.
Binance shifts to zero-fee bitcoin trading
In a statement from March 15, Binance said that the spot and margin trading pairs for BNB/BUSD, BTC/BUSD, and ETH/BUSD are also not included in the zero maker fee program. There will, however, be no effect on any other spot and margin trading pairs.
Lastly, it stated that normal trading costs would apply to its spot and margin trading pairs, including Tether’s USDT, and many other fiat currencies, such as the AUD, GBP, EUR, and others.
Important update. Given recent events, we are moving 0 fee BTC trading from BUSD to TUSD.
— CZ 🔶 Binance (@cz_binance) March 15, 2023
Let's spread the liquidity to more pairs.
https://t.co/6SwqjZYSFZ
When questioned on whether the zero fee still applies to BUSD, Binance CEO Changpeng “CZ” Zhao said no zero-fee will stop on BUSD in about a week.
In 2022, Binance introduced zero free trading for its spot pairs and since then, the exchange has experienced a boom in spot volumes, which, as of February, accounted for 62% of all trading in the sector.
The collapse of BUSD
According to a Financial Times investigation, investors withdrew more than $6 billion from BUSD last month.
The withdrawals occurred when U.S. market regulators are tightening their control over the digital asset market in the wake of FTX’s demise.
Since the crackdown on $BUSD, Binance has $200M $TUSD & $2.7B $USDC net inflow and $5.8B $BUSD $5.8B net outflow
— Tom Wan (@tomwanhh) March 15, 2023
Stables Binance holds on Ethereum:
– $7.5B $BUSD
– $4.7B $USDC
– $2.3B $USDT
– $537M $TUSD
Time for $TUSD to expand market share?
Source: https://t.co/RONPY9sPNS https://t.co/ap7BcVDhNv pic.twitter.com/beoSjpTGbR
The securities and exchange commission (SEC) has filed a lawsuit against cryptocurrency company Paxos.
Following this, last month the New York department of financial services ordered Paxos to stop producing the token with the Binance brand.
According to the lawsuit, Paxos’ BUSD offering constituted an unregistered security. Subsequently, Coinbase, a cryptocurrency exchange, was forced to halt BUSD trading.
Recently, Binance has also come under fire after a revelation revealed that the largest cryptocurrency exchange in the world had been using consumer money for unspecified internal purposes.
As a result of investors hastily withdrawing their money from BUSD, the stablecoin has lost more than a third of its value.