Trading fees are treated to be one of the most significant liabilities for both traditional and crypto investors when it comes to investing over exchanges. So, when Changpeng “CZ” Zhao, the founder and CEO of Binance, asked investors about their interest in trading on the crypto exchange with no fees, the obvious response was a loud yes despite the inherent risks pointed out by the entrepreneur.
However, CZ is open to applying the changes regardless of the challenges that a new system would bring, as he said, “Let’s see what the poll says. We listen to our users.”
Binance positions itself as the biggest crypto exchange, surpassing its nearest competition FTX by 10x in terms of trading volume. Zhao, known for applying features based on community feedback, reached out over Twitter to measure investor sentiment regarding the complete removal of trading fees.
While 0-fee trading may seem perfect for investors, CZ pointed out some of the problems it may sprout in the process — one of them being wash trading. Wash trading, wherein a user makes a series of buys and sells to operate market activity, can be used to go up the VIP tires on Binance.
Furthermore, CZ stated that bringing 0-fee trading to the common people will require Binance to implement numerous safety devices, which includes detection tools for identifying illegal trades. Each VIP tier is tied to certain trading benefits including lower trading fees. That made professional poker player Brian Rast ask “So if there are no fees, why do you need VIP tiers?”
Over 30,600 investors have voted on CZ’s poll — with around 65.5% persuaded to trade with no fee whatsoever. CZ is open to applying the changes regardless of the challenges that a new system would bring:
“Let’s see what the poll says. We listen to our users.”
Binance spread its roots across the world as it gradually acquired registrations and operational licences from regulators.
Continuing its expansion streak, Binance’s Spanish subsidiary, Moon Tech Spain, got registered as a VASP by Spain’s central bank on Thursday. CZ credited the development to Binance’s intent to protect 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.”
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