(Bloomberg) -- Binance is launching a program that it hopes will attract a new cohort of traders from traditional markets while the world’s biggest cryptocurrency exchange loses market share.

The initiative will allow new users to apply for Binance’s VIP program using their aggregated volume of cryptocurrencies and traditional assets, like equity, from other external trading venues, according to a statement.

The new incentive program marks the latest effort by the biggest crypto exchange to attract large traders, after several well known Wall Street trading shops pulled back from cryptocurrencies in the US amid a regulatory crackdown in the space.

Normally, Binance users need at least $1 million aggregated monthly trading volume on the exchange’s platform that trades crypto directly to become a VIP. Now, new users will be allowed to include their aggregated month trading volume combined with both crypto and traditional assets from up to two trading venues outside Binance.

The program is being launched at a time when Binance’s derivatives market share fell for a seventh consecutive month, according to data compiled by CCData. But the data firm also noted that Binance’s market share in spot trading has gone up to 35.7% this month from 31.7% in January. CCData’s numbers show that the volume of the global derivatives market in February was at about $2.6 trillion, more than double the volume of sport market at $1.1 trillion. The market has rallied this year amid the approval and launch of Bitcoin exchange-traded products in the US.

“The successful listing of Bitcoin spot ETFs and their inflows not only demonstrates that there is clear market demand for cryptocurrencies, it also shows any gap between traditional and digital assets is closing,” Catherine Chen, head of Binance VIP and institutional, said in the statement. “In our latest VIP Invitation program expansion, we aim to help high-volume users of traditional assets platforms reduce their entry barriers to cryptocurrencies.”

VIP traders at Binance receive competitive trading fees based on their status. For example, a regular user on Binance pays 10 basis points for trading fees, according to Binance’s website. But the fees for VIP 9 — the highest status for spot and margin traders on Binance — is only about one basis point. Other perks for VIP traders include exclusive invitations to private industry campaigns and events.

Read: Binance’s VIP Traders Got Sneak Peek of Record US Crypto Penalty

Binance ran into issues with its VIP designation in the past. Some Binance VIP traders were at the center of several lawsuits brought by US regulators such as the Commodity Futures Trading Commission. Binance agreed to pay $4.3 billion last week after a US judge approved a plea deal against the crypto exchange. Binance’s founder Changpeng Zhao also pleaded guilty to anti-money laundering and sanctions charges.

©2024 Bloomberg L.P.