Binance, the exchange that quickly gained the top spots in many trading pairs, is showing indications of seriousness about adding fiat to crypto pairs. Such a move could have a wide effect on the crypto market, most notably in unpairing altcoins and their price movements from the pressure of Bitcoin.
Binance, at the moment, is looking for a banking partner in Malta to be able to handle fiat deposits. But this trend is not exclusive: there has also been talk that Bittrex would open fiat deposits as well. In the case of Bittrex, the deposits would be only for corporate use, and there are no clear dates on when this would happen.
https://twitter.com/slaxawilly/status/987110254696542209
Until now, up and coming digital assets have, in most cases, relied on money flowing into Bitcoin, and then owners of Bitcoin making speculative bets on the currency. However, there are a few test cases where fiat flows directly into coins, as in the case of MonaCoin (MONA), which spiked independently. MONA is being directly bought with Japanese Yen.
Vertcoin (VTC) is another asset that recently built its own service, although the customer base is extremely limited.
An additional fiat on-ramp was opened by True USD (TUSD), which is in essence a way to get fiat onto Bittrex. The TUSD token recently saw its supply increase by around 100,000 coins, supposedly reflecting an inflow of the same amount of US dollars.
Right now, Coinbase and BitPanda are the two services most readily offering cash payment means for US-based, or European customers. But the drawback is that those services are very conservative in adding assets.
Binance, however, has zeroed in on the hottest digital assets, and there is already an appetite for many of the assets listed there. Some believe Verge (XVG), as well as Ripple (XRP) may be the best choice. In the case of XRP, this may give the coin a serious boost, especially after the listing on Coinbase fell through.
The only problem with fiat on-ramps is the need for greater transparency, otherwise buying and selling limits are relatively low, due to money laundering limitations. The presence of Binance in Malta may expose the exchange to more liberal regulations, but fully legalized services in the European Union hate to go through an expensive compliance process. For that same reason, Bittrex, among other exchanges, has refrained from offering fiat buying.
Binance Coin (BNB), the asset used to add liquidity to the market, has been sinking against BTC in the past days, but its dollar price remains relatively stable at $12.13.
This article appeared first on Cryptovest
