Binance Adds Self-Trade Prevention Feature to Stop Market Manipulation: All Details

Binance’s Self-Trade Prevention feature is expected to be available from January 26 for API users.

Written by Radhika Parashar, Edited by David Delima | Updated: 25 January 2023 17:36 IST

Highlights

Binance aims to safeguard all traders and investors on its platform
The STP feature is optional and will only work if enabled
Binance is also running educational programmes to educate people on Web3

Binance Adds Self-Trade Prevention Feature to Stop Market Manipulation: All Details

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.

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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.

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#Binance Spot launches the Self-Trade Prevention (STP) Function on API.

This optional API Order feature will allow users to set an STP parameter for each spot order.

Find out more :arrow_heading_down:https://t.co/ydCwQZbTIz
— Binance (@binance) January 25, 2023

“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.

Will crypto tax hurt the industry in India? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

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