Binance Implements Changes to Link Plus Program to Ensure Compliance and Fairness

Binance, the world’s largest cryptocurrency exchange, has announced significant changes to its Link Plus program in a move to enforce compliance and fairness. These changes, effective July 1, aim to eliminate fee bundling for prime brokers, closing a loophole that has allowed them to exploit the system for increased revenues.

The Binance Link Plus program has been used by prime brokers to manage institutional client accounts and offer fee rebates not typically available based on trading volumes. By taking advantage of a multi-tiered fee structure, these brokers have been able to boost their profits significantly. However, with the upcoming changes, clients will now be tied directly to the tier status their trading volumes warrant, eliminating the ability to bundle accounts.

This move by Binance underscores the exchange’s commitment to transparency and fairness, ensuring that all users are on a level playing field. Prime brokers, who have historically been able to offer clients better trading fees than they qualify for, will now only be able to provide tier benefits based on individual trading volumes.

The impact of these changes is already being felt by prime brokerages like Bequant, which is shifting its focus to principal trading due to the impact on their prime business. Binance’s efforts to enhance compliance and fair trading practices extend beyond the Link Plus program, with the exchange also announcing measures to restrict the misuse of account features that provide unfair advantages.

These changes come at a time when Binance has been facing legal challenges, including a $4.3 billion penalty for violating US anti-money-laundering and sanctions laws. Co-founder Changpeng Zhao’s legal troubles have led the exchange to tighten its compliance framework and enhance regulatory measures.

Overall, Binance’s decision to close the loophole in its Link Plus program reflects its commitment to ensuring fairness and transparency in the cryptocurrency market. While these changes may impact prime broker revenues and alter their business strategies, they demonstrate Binance’s dedication to compliance and user satisfaction, solidifying its reputation as a responsible player in the industry.