Binance, the largest cryptocurrency exchange globally, has introduced multiple trading pairs involving stablecoins. Binance declared in a blog post that it will allow trading beginning today for “spot trading pairs” such as BNB/TUSD, BTC/TUSD, ETH/TUSD, TUSD/USDT, USDC/USDT, and USDP/USDT.
The company said that they have halted or will halt BUSD automatic conversion for new deposits of USDC, USDP, and TUSD by users. Users can no longer withdraw USDC, USDP, or TUSD from their BUSD balances.
Binance has provided users with a manual conversion option to help them transition their BUSD balances to USDC, USDP, or TUSD at 1:1. Additionally, the company has introduced two promotional activities for specific spot trading pairs.
According to the blog post, Promotion A provides an opportunity to trade on the BTC/TUSD spot trading pair with no fees for both makers and takers and on the BNB/TUSD and ETH/TUSD spot trading pairs with zero fees for makers. On the other hand, Promotion B offers zero trading fees on the TUSD/USDT, USDC/USDT, and USDP/USDT spot trading pairs.
Both promotions have no specific end date. However, Binance retains the right to exclude transactions suspected to be wash trades, involve illegally bulk registered accounts, or appear to involve self-trading or market manipulation.
Furthermore, the exchange will have complete control over measuring all trading volume and program-related metrics. Rebate calculations for maker and taker fees will be paused during promotions and may resume later, pending further updates.
Binance Temporarily Halts USDC To BUSD Auto-Conversion Amid Market Conditions
Recently, Binance declared the temporary suspension of USDC to BUSD auto-conversion due to the prevailing market conditions. This decision was due to the significant increase in inflows and the rising challenge of maintaining the conversion process.
As per a statement issued by the company, Binance considers it a routine risk-management practice to monitor the situation. In response to the announcement, a community member commended the decision, deeming it a prudent step to avoid any potential market disturbances.
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Suspension is necessary to prevent disorder in the order book. Large USDC holders can buy a lot of BUSD and create chaos with market sell orders. Suspending prevents this potential issue from occurring.
The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing