Binance Closes Loophole in Link Plus, Affecting Prime Brokers

As a researcher with extensive experience in the cryptocurrency industry, I am closely monitoring Binance’s decision to address the loophole in its Link Plus program that allowed prime brokers to gain additional revenue at the exchange’s expense. This is a significant development that highlights the importance of transparency and fairness in the crypto market.


Binance, the globally prominent cryptocurrency exchange, is set to rectify a flaw in its Link Plus program which unintentionally granted prime brokerages the ability to generate extra income at Binance’s cost.

As a market analyst, I’ve learned that Binance is set to implement modifications to its Link Plus interface, which prime brokers employ to manage institutional customer accounts, starting from July 1. Based on my sources, some firms have been granting fee refunds to their clients through this platform, an advantage not typically granted depending on their trading volumes.

As a researcher studying the financial industry, I’ve come across information suggesting that Binance’s modifications to the Link Plus program could potentially diminish revenues for several prime brokers. Previously, these brokers had leveraged the system to provide enticing commissions and supplemented their income via Binance’s nine-tiered fee structure.

Beginning in the previous year, companies enrolled in the Binance Link Program have been informed that stricter compliance regulations and adjustments to our fee framework for Link users are imminent. These modifications aim to promote clarity and equity. (Binance representative’s email statement from Thursday)

Users who trade a minimum of $4 billion monthly on Binance’s top “VIP 9” tier are granted significantly reduced fees compared to other users. Prime brokers often achieve this elite status by merging multiple client accounts, thereby enabling them to transact at lower costs while charging higher rates to their clients and retaining the price difference.

Prime broker clients’ tier status will now be determined solely by their Binance trading volumes, with no possibility of grouping multiple accounts together.

Several leading brokers have a good chance of losing their elite ranking due to Bequant’s shift in focus. As the core business strategy of this Malta-based crypto trading platform hinges on exploiting price differences between Binance’s fee tiers through arbitrage, its CEO, George Zarya, revealed this intention.

Additionally, Binance announced plans to restrict access to certain account features for some users, maintaining that this initiative is unrelated to the ongoing Link Plus interface overhaul.

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2024-06-27 21:57