Binance Users Support 0-fee Trading Despite CZ’s Worries About Wash Trading

Binance – When it comes to investing through exchanges, trading costs are one of the biggest liabilities for both traditional and cryptocurrency investors.

Therefore, it should come as no surprise that, despite the risks the founder and CEO of Binance, Changpeng “CZ” Zhao, pointed out, investors’ interest in trading on the cryptocurrency exchange with no fees was overwhelmingly positive.

The largest cryptocurrency exchange currently is Binance, which outperforms its closest rival FTX in terms of trading volume by a factor of 10. Zhao, who is known for putting community suggestions into practice, contacted investors via Twitter to ascertain their feelings about the complete elimination of trading costs.

While zero-fee trading may appear to be the best option for investors, CZ highlighted other potential problems that could arise, including wash trading. To advance through the VIP tiers on Binance, a user might use wash trading, which involves making a series of buys and sales to manipulate market activity.

Binance will need to put in place a variety of security measures

Furthermore, CZ noted that in order to make 0-fee trading widely available, BNB will need to put in place a variety of security measures, including technologies for detecting fraudulent trades. Lower trading fees are one of the benefits associated with each VIP tier. So why do you need VIP tiers if there are no fees, Brian Rast, a renowned poker player, questioned.

Over 31,900 investors voted on CZ’s poll at the time of writing — with around 65.6% inclined to trade with no fee whatsoever. CZ is open to implementing the changes regardless of the challenges that a new system would bring:

“Let’s see what the poll say. We listen to our users.”

BNB keeps growing its global presence by consistently obtaining registrations and operating permits from authorities.

Moon Tech Spain, a subsidiary of BNB that operates in Spain, was Thursday registered as a VASP by the Spanish central bank as part of the company’s ongoing development. The development, according to CZ, was caused by Binance’s desire to defend users:

“Effective regulation is essential for the widespread adoption of cryptocurrencies. We have invested significantly in compliance and introduced AMLD 5 and 6 compliant tools and policies to ensure that our platform remains the safest and most trustworthy in the industry.”

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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