As Binance faces increasing competition and regulatory challenges in the crypto space, to expand its user base, the world’s largest cryptocurrency exchange by trading volume has announced the launch of a new VIP program targeting traders from traditional markets.
According to a Bloomberg report, the initiative aims to attract new users by allowing them to apply for VIP status based on their aggregated trading volume of cryptocurrencies and traditional assets from external trading venues.
Binance Targets Traditional Traders With New Program
Per the report, the exchange calls this new play a strategic push to lure traders from traditional markets, many of whom have recently withdrawn from cryptocurrencies due to regulatory uncertainty. Traditionally, Binance required users to achieve a minimum aggregated monthly trading volume of $1 million solely on their platform to qualify for VIP status.
However, under the new program, new users can combine their aggregated monthly trading volume from up to two external trading venues with crypto and traditional assets.
Notably, Binance’s derivatives market share has experienced a decline for the seventh consecutive month, as reported by CCData, a data firm specializing in the crypto industry. However, the firm also noted that Binance’s market share in spot trading has increased to 35.7% this month, up from 31.7% in January.
The surge in spot trading volume can be attributed to the growing popularity of Bitcoin exchange-traded funds (ETFs) and the convergence of traditional and digital assets.
Reduced Fees And Exclusive Benefits
According to the Bloomberg report, Binance’s VIP program participants will receive competitive trading fees based on their status, with VIP 9 users enjoying significantly reduced fees. In addition, VIP traders will reportedly receive exclusive invitations to private promotions and industry events.
It is worth noting that Binance has faced regulatory scrutiny in the past, with some VIP traders involved in lawsuits brought by US regulators, including the Commodity Futures Trading Commission (CFTC).
Binance recently agreed to pay a $4.3 billion settlement following a plea deal approved by a US judge, and its founder, Changpeng Zhao (CZ), pleaded guilty to charges related to anti-money laundering (AML) and sanctions violations.
Catherine Chen, Head of Binance VIP and Institutional, highlighted the growing demand for cryptocurrencies, with Bitcoin Spot ETFs at the forefront of this surge in investor interest and the narrowing gap between traditional and digital assets. Chen stated:
In our latest VIP Invitation program expansion, we aim to help high-volume users of traditional asset platforms reduce their entry barriers to cryptocurrencies.
As Bitcoin approaches its current all-time high (ATH) of $69,000, currently trading at $62,100, the price of Binance Coin (BNB) has mirrored the upward trend of the leading cryptocurrency. BNB has surged to the $416 price level, a milestone not seen since April 2022, accompanied by an 11.8% increase in price over the past seven days.
Featured image from Shutterstock, chart from TradingView.com