Binance, one of the leading cryptocurrency exchanges, has recently announced the expansion of its free trading options for the spot and margin trading pairs of the First Digital USD (FDUSD) stablecoin. This move comes as part of Binance’s ongoing efforts to encourage its users to embrace the FDUSD stablecoin. The new trading pairs include popular cryptocurrencies such as BNB, Dogecoin, Chainlink, Ethereum, Solana, and XRP.
Starting from December 8, Binance users will be able to enjoy zero maker and taker fees for the newly introduced trading pairs. This offer will be available for an undisclosed period. It is important to note that this promotion excludes these pairs from the existing BNB fee discounts, rebates, and other adjustments. Binance has, however, stated that it reserves the right to disqualify trades that it deems to be wash trades or illegally bulk account registrations, as well as trades that display attributes of self-dealing or market manipulation.
Binance’s decision to expand free trading options for FDUSD comes as it phases out support for Binance USD (BUSD). By December 15, Binance will no longer provide support for BUSD, urging users to convert their holdings into the new stablecoin before the end of the year. The exchange has also announced that BUSD withdrawals will cease by December 31, with BUSD balances automatically converted to FDUSD. This decision is a result of regulatory issues surrounding the BUSD stablecoin.
Earlier this year, Paxos, the issuer of BUSD, suspended stablecoin issuance due to increased scrutiny from U.S. regulators. The U.S. Securities and Exchange Commission (SEC) classified BUSD as a security, leading to concerns within the crypto community. As a result, the circulating supply of BUSD has drastically decreased to less than $2 billion. Binance, along with Paxos, has strongly opposed this classification but has faced a significant drop in BUSD usage.
In response to these regulatory challenges, Binance has been heavily promoting FDUSD as a viable alternative. The exchange has introduced new products for this digital asset and provided incentives for its use. However, the circulating supply of FDUSD remains less than 1 billion and is only available on a limited number of crypto exchanges.
Binance’s expansion of free trading options for FDUSD represents its commitment to the growth and adoption of stablecoins in the crypto market. By providing zero maker and taker fees for the newly introduced trading pairs, Binance aims to encourage users to embrace FDUSD as a reliable and secure stablecoin. However, the decision to phase out support for BUSD highlights the challenges associated with regulatory scrutiny in the cryptocurrency industry. As Binance continues to navigate these challenges and promote FDUSD, it remains to be seen how users will respond to this shift in stablecoin offerings.