Binance to Fuel Competition in P2P Crypto Trading Market
Major crypto exchange Binance now aims to find more merchants for its a peer-to-peer (P2P) crypto trading platform in an attempt to meet “growing demand.”
The company launched a global peer-to-peer (P2P) merchant program, encouraging merchants to use the exchange as a way of providing payments through fiat currencies and earn revenue by doing so.
“When we first launched our P2P trading services last October, we carefully selected merchants to protect users’ interest,” Binance CEO Changpeng Zhao said, adding that “In the past quarter, there has been increasing growth in trading volumes on Binance P2P platform, and we have constantly received requests for more fiat-to-crypto access from our global community.” This week, Binance announced its support for Vietnamese Dong (VND) on its P2P trading platform.
The CEO did not provide any numbers about the P2P trading on their platform.
The greatest threat facing P2P platforms is often nefarious users. Because there is no centralized governance system, black hat merchants and traders can often take widespread advantage of the naive.
For protection, the company has created an unspecified elimination mechanism for poor merchants. While not explicit, it appears that eliminated merchants would be unable to participate in future P2P solutions that the company offers.