Binance’s Self-Trade Prevention feature is expected to be available from January 26 for API users.
Binance, founded in 2017, is now among the world’s largest crypto exchanges
Photo Credit: Binance
The global crypto market that is currently rising out of a months-long slump, is expected to see more engagement from traders and investors in the coming days. With trading expected to swell, crypto exchange Binance has decided to take steps to prevent nefarious actors from manipulating the market and misleading other users. The firm has introduced a new function called ‘Self Trade Prevention' (STP) to make sure market manipulators from exposing others to financial risks.
The feature has been launched for the users of Binance's API. This service from the exchange allows algorithmic traders to automate trading using programming language.
Enabling the STP feature would restrict the implementation of self-trading orders where traders trade amongst themselves to give others the impression that trading activities around a particular crypto are more than they really are.
By doing this, the said crypto assets could attract and deceive other unsuspecting traders or investors, who are engaging in manual trading and could incur losses.
“This optional API Order feature will allow users to set an STP parameter for each spot order to determine the consequences of a potential self-trade. There will be no impact to users who do not use this feature,” Binance said in a blog post.
The exchange also posted the official announcement regarding the feature on Twitter, revealing that the STP function would go live starting January 26.
“Please note that this function is only available via API. Users on Binance Web, Binance app and the Binance desktop app will not be affected,” the blog post added.
Binance has decided to step into 2023 with a Web3 scholarship and training programme that would onboard 30,000 people.
The University of Western Australia, the University of Nicosia in Cyprus, the Frankfurt School of Finance & Management in Germany, and the Utiva Technology Hub in Nigeria have agreed to participate as educational partners in Binance's initiative.
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