Binance, a cryptocurrency exchange, has announced the launch of a new tool to assist API users in preventing self-trading on the system.
The Binance API is a service the exchange provides that enables other trading firms to connect to Binance’s servers to obtain market data and facilitate trades.
Users of API spot trading can avoid self-trading with the help of the Self-Trading Prevention (STP) function. Users of the Binance API will be able to utilize the new STP function as of January 26, 2023.
Self-trading occurs when an individual or a network of connected users transacts with one another. Because the same parties are involved on both sides of the trade, there is no discernible change in who is the beneficial owner of the assets traded. Orders that would result in a self-trade will be prevented from being completed by the Self-Trade Prevention (STP) function.
It should be recognized that the STP function does not apply to traders using the desktop, smartphone, or online apps for Binance. Additionally, those who don’t make use of this service won’t be impacted.
Binance stated:
“The STP function gives users the tools they need to avoid any inadvertent self-trading. Other benefits include being able to run trading strategies with a guarantee of no self-trades and saving fees on unnecessary trades.”
Binance noted that without STP, unintended self-trading in a competitive market could occur.
According to reports from earlier this week, Binance has processed a significant number of transactions for Bitzlato, a different cryptocurrency exchange.
According to the statement made by FinCEN, Binance was one of Bitzlato’s top three counterparties in terms of the quantity of bitcoin it received between May 2018 and September 2022.
U.S. authorities detained Bitzlato’s founder, Anatoly Legkodymov, last week on suspicion of operating a money laundering engine.
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