Binance US Cancels the Fees for Bitcoin Transactions

This is part of an effort to “help our markets and customers when they need it,” CEO Brian Shroder said. The US cryptocurrency exchange BinanceUS no longer charges fees for buying or selling Bitcoin by U.S. dollars.

Cancellation of Bitcoin Transaction Fees

This includes the cancellation of Bitcoin transaction fees for the three top stablecoins. USDT, USDC, and BUSD.This kind of stablecoin is linked to the US dollar using US dollar reserves or other highly liquid financial instruments.

Brian Schroder, CEO of BinanceUS, said in a company statement that this change takes effect immediately, which is “to completely change the charging method of our industry, improve the accessibility of cryptocurrencies, and help our markets and customers when needed.

This makes BinanceUS the first U.S. cryptocurrency exchange to cancel the transaction fees of multiple Bitcoin transaction pairs. For a company whose main business model depends on such fees, this is an influential but counter intuitive decision, especially considering the large volume of transactions between Bitcoin and USDT in most days.

Not the First Recent Unorthodox Move

This is not the first recent unorthodox move by the exchange. Despite the current cryptocurrency bear market, Binance has announced more than 2000 job vacancies, which may be to poach top industry talents who recently quit (or did not fully join) coinbase and other competitors.

Changpeng Zhao, chief executive of Binance, claimed that after choosing to end the advertising space in the United States during the bull market, a “war chest” had been established. In fact, although Binance is the largest cryptocurrency exchange in the world, coinbase is more popular than it in the United States. Nevertheless, bold measures such as the elimination of Bitcoin transaction fees can attract more investors.

“We think this is the first fee change of Binance.US. Bitcoin will be used as a test of this model and may be promoted in other token and currency pairs,” company spokesman Sam Fisher told Decrypt  in an email.

Last year, Strike, a Bitcoin payment application, took a similar approach to Binance, reducing the Commission for buying Bitcoin to 0.3%. In an interview in 2021, CEO Jack mallers explained why he thought this was the best long-term approach for his company.

“This is a race to the bottom,” said mallers, who believes that future competitors will only charge lower and lower fees. “You see this in the stock market. Now, it is free to execute a stock transaction. This is the so-called Robinhood.”