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Report: Binance To Offer Margin Crypto Trading, Despite Regulation

Binance To Offer Crypto Trading On Margin

When the now-popular crypto exchange Binance unveiled its whitepaper in 2017, it promised its angel investors a stellar platform that would support much under the Bitcoin sun. Although the startup has delivered on much of its original promises, Binance’s whitepaper mentioned “margin trading” as a part of its “feature rollout.” But, as you know, leverage is unavailable. Moreover, the firm has kept its mouth mostly shut on the matter.

Yet, a recent exclusive from The Block claims that the renowned trading platform is on the verge of giving its millions of users access to margin. The outlet claims that such an offering, purportedly in the works, will require users to stake BNB.

Code found by a pseudonymous programmer would confirm the rumors that the Malta-registered exchange is looking into margin trading.

The user, going by the moniker “enriquejr99,” noted that Binance has “silently included” two booleans that are as follows: isSpotTradingAllowed and isMarginTradingAllowed. These two lines of code were first spotted in Binance’s Ethereum-Bitcoin pair.

Enrique added that upon further analysis of Binance’s 482 crypto trading pairs, he discovered that margin was mentioned, but is currently disabled.

It isn’t clear when the booleans were added, but the exchange’s recent multi-hour downtime could be when Binance’s developers quietly added that in, as the company could very well be readying up to give its millions of users access to leverage. The details of this purported project are, of course, scant. But initial margin support for popular crypto assets, such as Bitcoin and Ethereum, would make sense.

Not So Fast?

Although the evidence seems undeniable, Changpeng “CZ” Zhao, the chief executive of Binance, has questioned the hearsay. In an interview with CryptoSlate’s Joseph Young, Zhao explained that the code seen above is part of his company’s attempts to “future proof” their “API framework as part of our system upgrades.” This would confirm the sentiment that the booleans were added during the exchange’s recent down time, but Zhao added that he can give “no dates” on the release of margin.

Even if CZ is prepping for the launch of this feature, The Block’s sources are wary that this could spell regulatory trouble for the exchange, which has already been booted from Japan and Hong Kong.

Sources explained that margin with cryptocurrencies specifically could be an issue with governmental entities, as Bitcoin’s inherently unregulated nature allows for price manipulation not only on the blockchain layer but with exchanges too. One explained:

“Any trading activity that is confusing, insufficiently explained or hyper-predatory is bound to leave unhappy customers, who may complain to regulators.”

This all implies that it may be in Binance’s favor to deter the launch of margin, rather than to delve into such a subsector without weighing the risks.

Photo by Mark Finn on Unsplash

The post Report: Binance To Offer Margin Crypto Trading, Despite Regulation appeared first on Ethereum World News.

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Cryptocurrency Price Correlations in Bitcoin, Dollar Flipped in 2018, Binance Finds

Binance research found correlations among crypto assets in BTC terms have waned, while they have strengthened in USD since 2017.

Price correlations among major cryptocurrencies increased against the U.S. dollar (USD) but fell in Bitcoin (BTC) terms, a new report from cryptocurrency exchange Binance revealed on March 20.

Part of an investigation into price trends within crypto markets since 2017, Binance found that behavior among assets is diverging depending on whether returns are denominated in USD or BTC.

Specifically, USD returns from holdings were more correlated among cryptocurrencies within the three months of 2019 ending March 1 than in 2017.

BTC returns, by contrast, are less correlated in current conditions than they were eighteen months ago.

“Correlations in BTC returns are important as BTC remains one of the best price indicators of crypto markets for two key reasons,” Binance explained about the impetus behind its field of research.

Those reasons, the post said, are the liquidity and market dominance that Bitcoin continues to exhibit compared to other cryptocurrencies.

The results also point to more recent phenomena to occur within the market, notably stablecoins, which have taken over trading pairs which would once have been denominated in BTC.

Binance itself has adopted a highly bullish stance on stablecoin assets, choosing to add large numbers of them over the past six months.

The report concluded:

“While these changes in correlations coincided with the rise in stablecoin volume and stablecoin trading pair offerings across exchanges, the analysis reveals additional idiosyncratic factors that should be considered when constructing an optimal cryptoasset portfolio.”

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Binance API Seemingly Reveals Ongoing Margin Trading Implementation

Major cryptocurrency exchange Binance is seemingly working on the implementation of margin trading.

Changes made to the public Application Programming Interface (API) of major cryptocurrency exchange Binance seemingly reveal that the company is working on implementing margin trading.

A Reddit user brought the API changes to public attention on March 20 after they were updated last week, noting that the Binance public API response differs from what it should be according to the official documentation released by the company on GitHub. More precisely, the API now includes two additional boolean — which means that their value can be only true or false — variables.

The name of the first added variable is “isSpotTradingAllowed,” while the second is “isMarginTradingAllowed.” The self-explanatory variable names seemingly suggest that Binance is in the midst of implementing margin trading capability.

At press time, data returned by the API also shows that isSpotTradingAllowed is set to true (enabled) and isMarginTradingAllowed is set to false (disabled) on all of the 482 trading pairs.

Binance first promised in the feature rollout section of its white paper that margin trading would be implemented after spot trading and before futures on its exchange. As one Reddit user points out in a comment to the post, what’s new now is the actual change in the API.

Other crypto exchanges already offer margin trading.

In February, major Malta-based cryptocurrency exchange OKEx added four new margin trading pairs to its platform with up to 100x leverage. And in December of last year, Hong Kong-based cryptocurrency exchange Bitfinex launched margin trading for stablecoin Tether (USDT) against USD.

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TNW: Binance Lite to Allow Australians to Purchase Bitcoin at Newsagents

Binance Lite will enable the exchange’s Australian customers to buy Bitcoin with fiat money from supported newsagent stores.

Major cryptocurrency exchange Binance is expanding its “Binance Lite” service to allow Australian residents to purchase Bitcoin (BTC) at newsagents, technology news outlet The Next Web reported on March 19.

The new service Binance Lite — which will initially be introduced in Australia — is purportedly set to enable customers to buy digital currency with fiat money from more than 1,300 supported newsagents within the country. The service currently supports only the purchase of Bitcoin, although it will offer more digital currency and fiat options at a later date.

Before using the service, customers are requested to pass account verification, including Know Your Customer (KYC) and Anti-Money Laundering procedures. Following that, users will be able to place an order online, deposit cash at a newsagent, and receive their Bitcoin “within minutes.” Australian customers of Binance Lite will reportedly be required to pay a five percent fee for operations.

Earlier this month, CEO of Binance Changpeng Zhao hinted at the creation of a new fiat-to-crypto exchange in Argentina in a tweet. Following the tweet, crypto news website CoinSpice reported about an agreement between the government of Argentina with Binance Labs — the exchange’s investment and social impact arm — to co-invest in blockchain projects that are backed by the exchange.

In January, Binance added support for credit card cryptocurrency purchases through its partnership with payment processor Simplex. Zhao said then that the exchange’s clients can purchase digital assets with credit cards and “start trading in minutes.”

Last November, Binance confirmed to Cointelegraph that it would use an automated KYC application provided by financial software firm Refinitiv. This will purportedly allow Binance to integrate the World-Check Risk Intelligence database into their internal workflow and streamline the screening process for onboarding, KYC, and third-party risk due diligence.

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Binance Launchpad Hosts Its Third ICO With Celer Network Raising $4 Million

Binance’s exclusive token launch platform Binance Launchpad completed a $4 million sale of Celer Network (CELR) tokens.

Binance Launchpad, the token launch platform of the major global crypto exchange Binance, has completed a $4 million sale of Celer Network (CELR) tokens, the company wrote on March 19.

The tokens sale was completed in 17 minutes and 35 seconds, with all 597,014,925 CELR tokens sold in a single session.

As the company announced two weeks ago, the CELR token sale only accepted Binance’s own cryptocurrency Binance Coin (BNB), with each CELR token worth 0.000434 BNB or $0.0067 dollar equivalent. One BNB could purchase 2,303.35821 CELR tokens. The minimum investment amount was set at $20, while the maximum contribution amount was capped at $1,500.

Binance Launchpad is an exclusive token launch platform of Binance that is designed to help blockchain startups raise funding to develop products targeting cryptocurrency adoption. As such, Celer Network represents a layer-2 scaling platform that aims to enable off-chain transactions for both payment transactions and generalized off-chain smart contracts.

Previously, Binance Launchpad hosted two major tokens sales such as the Fetch.AI (FET) and the BitTorrent token (BTT). The BTT sale concluded on Jan. 28, with investors purchasing all 50 billion BTT tokens, worth of $7.1 million, in less that 15 minutes. The FET token sale raised $6 million dollars on Feb. 25.

At press time, Binance is the second largest crypto exchange by daily trading volume, having been slightly overtaken by Hong Kong-based OKEx. Yesterday, trading analytics platform The Tie published research claiming that 90 percent of trade volumes reported by crypto exchanges may be incorrect.

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New Report Warns 87 Percent of Cryptocurrency Exchange Volume Is Potentially Suspicious

A reports from trading analytics platform The Tie shows that the majority of exchanges may be faking their exchange volume.

Almost 90 percent of cryptocurrency exchanges’ reported trade volumes may be incorrect, new research from trading analytics platform The Tie warned in a digest released on March 18.

Reporting on figures gathered from 97 exchanges, researchers found that the vast majority of the volume claimed to come from users may not in fact exist.

The revelations came as a result of calculations of lesser-known exchanges versus well-known businesses such as Binance and Kraken.

“In total we estimated that 87% of exchanges reported trading volume was potentially suspicious and that 75% of exchanges had some form of suspicious activity occurring on them,” The Tie wrote in social media comments on the findings. The organization added:

“If each exchange averaged the volume per visit of CoinbasePro, Gemini, Poloniex, Binance, and Kraken, we would expect the real trading volume among the largest 100 exchanges to equal $2.1 (billion) per day. Currently that number is being reported as $15.9 (billion).”

Exchanges have often fielded accusations of volume misreporting: a similar reported issued in March 2018 warned of similar problems with data from exchanges.

Then, as now, Binance CEO Changpeng Zhao (CZ) took industry participants to task, arguing listing resources such as CoinMarketCap added to the confusion.

“Why do exchanges fake volumes?” he queried on Twitter following The Tie’s report. CZ also wrote:

“(CoinMarketCap) is [the] highest traffic website in our space, and [the] biggest referrer for all exchanges. Ranked high on CMC has benefits for getting new users. BUT at the expense of DESTROYING CREDIBILITY with pro users.”

Zhang repeated similar claims about CoinMarketCap which appeared in December, focusing on the the top 25 Bitcoin (BTC) trading pairs.

Last month, meanwhile, Cointelegraph reported on how overall exchange volumes had dropped to their lowest levels since May 2017.

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Crypto Exchange Bittrex International to Host Its First Public ‘Initial Exchange Offering’

Crypto exchange Bittrex is hosting its first token sale —- dubbed an Initial Exchange Offering (IEO) — on its Malta-based digital asset trading platform.

Crypto exchange Bittrex is hosting its first token sale — dubbed an Initial Exchange Offering (IEO) — on Bittrex International, its Malta-based digital asset trading platform. The news was announced in an official press release published on March 11.

Bittrex International, which operates within an EU and Maltese crypto regulatory framework, will officially start the IEO on Friday, March 15, the press release announces. Bittrex users will be able to use Bitcoin (BTC) to purchase “XRD” tokens, developed by international gaming data blockchain project Raid.

According to the press release, Raid is a project that rewards gamers for sharing data,as part of a tokenized ecosystem that aims to enhance marketing and business growth and foster other improvements for gaming companies.

Bittrex CEO and co-founder  Bill Shihara has said that IEOs on the platform will allow international token investors to back new blockchain projects “with the peace of mind that comes from Bittrex International regulated in Malta.”

Bittrex has outlined the details of the IEO, which will end when a hard cap of 17 billion XRD (~$6 million) is reached.

Bittrex is currently within the top 50 largest crypto exchanges globally by adjusted daily trade volume, seeing about $73 million in trades on the day to press time.

Bittrex International’s foray into token sales follows major crypto exchange Binance’s token sale platform Launchpad, which recently hosted the high-profile — and extremely swift — token sale for the Tron-based BitTorrent token (BTT) this January. The BTT sale netted $7.1 million dollars with the sale of 50 billion tokens within 15-18 minutes.

In February, Launchpad hosted a similarly speedy public token sale for AI and smart contract project Fetch.AI.

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Binance-Backed OTC Firm Releases Anti-Money Laundering Compliance-as-a-Service Product

Koi Trading in partnership with IdentityMind have developed an AML compliance-as-a-service product supporting cryptocurrencies.

Binance-backed over-the-counter (OTC) desk Koi Trading has partnered with IdentityMind, a platform for online risk management, to develop an Anti-Money Laundering (AML) compliance-as-a-service product. The development was announced in a press release published on March 12.

The parties have reportedly released an AML compliance-as-a-service product dubbed “Koi Compliance,” supporting digital currency and targeting money services businesses. The new platform will purportedly enable companies to focus on conducting their business, letting Koi Compliance to perform Know Your Customer (KYC) procedures, monitor transactions, conduct sanctions screening, and keep records.

Last November, Koi Trading received $3 million in investment from Binance Labs, an incubator arm of the world’s leading cryptocurrency exchange (as of press time) Binance. The move was purportedly taken to enable Binance Labs to utilize Koi’s quantitative research, data science, and compliance consulting services.

That same month, Binance confirmed to Cointelegraph that it would use an automated KYC application provided by financial software firm Refinitiv. That would allow Binance to integrate the World-Check Risk Intelligence database into their internal workflow and streamline the screening process for onboarding, KYC, and third-party risk due diligence.

In January, Cointelegraph reported that blockchain compliance startup TRM, which developed a so-called token relationship management platform to help crypto businesses streamline their AML compliance, closed a funding round totalling $1.7 million led by United States-based investment firm Blockchain Capital.