A new platform has been introduced by crypto exchange Binance, which is aimed at catering to institutional and VIP investors. Binance users can take advantage of the VIP program to get rewards in the form of discounts and other privileges and they can climb up the VIP tiers, based on their trading volume.
Last Thursday, the world’s top crypto exchange in terms of its trading volumes, Binance announced the launch of a new platform it calls ‘Binance Institutional’. This particular platform has been specially designed to cater to institutional and VIP crypto investors. The exchange stated that it was one of the efforts that it was making for expanding its institutional services and offerings.
According to its website, the services provided by Binance Institutional are designed to facilitate all types of institutions. These include hedge funds, asset managers, proprietary trading companies, mining companies, family offices, liquidity providers, brokers, and high-net-worth individuals. There are a number of services included in the new platform, which include brokerage, custody services, asset management, and direct access to OTC liquidity.
Changpeng Zhao (CZ), the chief executive of the Binance exchange, said that brokerage services can be immensely useful in helping the industry eliminate some of the gaps that exist between traditional financial markets and the crypto space and can also ensure continued growth in digital assets.
The VIP program
As far as the VIP program is concerned, Binance announced that it is meant to provide users with high trading volumes to enjoy different perks and rewards, depending on the VIP tier they are on. They can get discounts and other privileges that will not be available to regular clients. Some of the VIP privileges include higher withdrawal limits for 24 hours and discounts on fees.
As for VIP tiers, you will find that there are a total of nine provided. In order to qualify as a VIP user on Binance, a trader needs to maintain a trading volume of a minimum of 1 million BUSD for 30 days and they have to have 25 BNB in their account balance. This is the requirement for the first VIP tier.
When it comes to the 9th VIP tier, a trader is required to maintain a trading volume of 5 million BUSD for 30 days and their balance in BNB should be around 5,000.
Problems for Binance
While Binance is undoubtedly launching new services to cater to its clients, it is important to note that the exchange is also facing several problems. According to reports, the Securities and Exchange Commission (SEC) in the United States is investigating the exchange’s BNB token. The federal authority has alleged that the token is unregistered security.
This is the same issue that Ripple Labs has had to face with its XRP token and it is currently involved in a legal battle with the SEC over this matter. Things could go down the same way for Binance, which could create further issues for the exchange.