Rumors are that the largest cryptocurrency exchange, Binance has announced that it is making plans to add USD to crypto trading pair. This is a welcome move in the cryptocurrency market where it is often not easy to purchase cryptocurrencies using fiat currencies. Similarly, cryptocurrency traders and investors will have an opportunity to exchange their cryptocurrencies to fiat quite easily.
Investors have already expressed their delight on receiving the news, ‘Very excited for this, won’t have to worry about USDT anymore!” wrote Boundless_moons (investor). Another investor wrote, “Big news. Coinbase are losing their market dominance. Bittrex has also mentioned it will be offering fiat deposits soon as well.”
Some cryptocurrencies could receive a boost from Binance’s “USD crypto’ trading pairs are Ripple (XRP) and Verge (XVG). These two digital assets have been trying to get listed on the US-based Coinbase cryptocurrency exchange without success. Coinbase already allows “USD crypto” trading pairs but it is not easy for a digital asset to get listed. Not long ago Ripple was accused of offering Coinbase cash incentive in a bid to secure a listing. Ripple has, however, been feared to be a security token for some time now.
At the same time, the Securities and Exchange Commission (SEC) has warned that cryptocurrency exchanges to stay away from listing unregistered securities. Ripple has still maintained that XRP is not a security token, although a listing on Coinbase will be a boost to the cryptocurrency.
XRP/USD and XVG/USD trading pairs on Binance are bound to increase the trading volumes on for both Ripple and Verge. Consequently, it could also attract more investors, as a result, the prices could spike. The cryptocurrency market is currently embracing a bullish trend that returned the previous week and the coins and altcoins are exploring news highs and find higher consolidations.
In other news, Binance has recently moved its operations to Malta, although its headquarters are still in Hong Kong. Malta is a crypto progressive island, besides; Binance has been looking to move from China for a while now. Regulations in China are quite unpredictable therefore the largest cryptocurrency exchange has been looking for a permanent location to carry out business without fear of uncertainties.
Initially, Binance had applied to shift location from China to Japan, but Japan’s regulator the Financial Services Agency (FSA) issued it with a warning that requires it to obtain a license or risk criminal charges. Malta, on the other hand, presented itself as a viable location.
The Malta location offers Binance several advantages, for example, for example, the earlier mentioned fiat-to-crypto trading pair, investors and traders will now be free to purchase digital assets using USD or even the Euro directly. Prior to this, you had to buy Bitcoin from another cryptocurrency exchanges then transfer to Binance before purchasing other coins and altcoins.
Binance CEO, Mr Zhao has mentioned that they are working on securing a deal with local Banks in Malta that will make the process depositing and withdrawing fiat currencies seamless and accessible.
UPDATE April 20:
Several crypto publications covered the news including the Daily Express, all based of rumours circulating across social media.
While we can't predict the future, others keep attempting it on us. Both "news" are not accurate. We are working with banks (to potentially support fiat), but no plans for USD in the short term. No xvg or xpr involved. Be careful around predictive "crystal ball" news.— CZ (@cz_binance) April 20, 2018
According to CZ, they are indeed working with banks to support FIAT, but USD pairs are not coming in short term, he did not said they would not come at all, we will have to wait for more developments.