Binance Clarifies Rumors About API Featuring Crypto Margin Trading Binance Clarifies Rumors About API Featuring Crypto Margin Trading
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Binance Clarifies Rumors About API Featuring Crypto Margin Trading

Binance Clarifies Rumors About API Featuring Crypto Margin Trading

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Earlier this week, a programmer on Reddit reportedly discovered margin trading features on Binance’s API, the world’s largest crypto exchange by daily volume.

Noting that major cryptocurrency exchanges like BitMEX and Bitfinex have been able to manage high volume markets by featuring margin trading, the developer wrote:

“This change has not been reflected on the documentation. Further analysis of the response revealed that all 482 trading pairs have spot trading enabled and margin trading disabled; which makes sense. However, this API update implies that Binance is considering the implementation of margin trading features.”

Source: Reddit, Binance API

No Date, Nothing Confirmed for Crypto Margin Trading

When CryptoSlate reached out to Binance, the team confirmed the validity of the public statement of Binance CEO Changpeng Zhao. On Wednesday, Zhao, better known to the cryptocurrency community as CZ, said that there are no dates to integrate margin trading in the foreseeable future. He responded:

“We future proof our API framework as part of our system upgrades. No dates.”

Is Margin Trading Needed?

Since early 2018, despite the rapidly expanding operations of leading cryptocurrency exchanges and trading platforms, the daily volume of the cryptocurrency market has noticeably subsided.

Some exchanges have taken the route of integrating a wide range of crypto assets to increase their volume to adjust to the drastic change in market conditions while some have introduced unique services to open a variety of methods for new investors to come into the cryptocurrency market.

On Mar. 20th, for instance, Binance officially announced the launch of Binance Lite Australia, enabling local users to purchase bitcoin at over 1,300 physical storefronts throughout the region. Binance CFO Wei Zhou said at the time:

“Binance Lite Australia further expands digital currency adoption by providing easier ways to buy bitcoin. We are excited to continue to roll out more fiat to crypto gateways around the world to support the growth of our industry. We firmly believe that more adoption will lead to more innovation and more economic opportunities.”

While Binance may not need to integrate margin trading to increase their revenues or daily volume, the demand for margin trading options from the market has increased in recent years following the rapid growth of other margin trading service offering exchanges.

At the Binance Blockchain Week conference in Singapore, CZ also emphasized that the exchange and the industry are “actually much healthier than a year ago” and that the company is in a good position after the debut of Binance Jersey, its newest fiat-to-crypto exchange.

“So far, the Jersey market is overwhelmed with demand. That shows there’s plenty of demand there. Right now, the way I view it is that most of the money is still in fiat, it’s still much larger than the crypto market cap. So we need to get fiat coming in. On the other side of it, we are working on the decentralized exchange so the Binance DEX will come out soon,” CZ said.

For now, there are no confirmed dates for margin trading options on Binance.

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Posted In: , Exchanges, Rumors