As so-called "paddock pumping," in which virtual assets designated as "issues to watch for transactions" on domestic virtual asset exchanges and banned from deposits and withdrawals swing wildly, appears, Binance Holdings Ltd., the world's largest virtual asset exchange, will introduce a feature on the 15th to prevent sharp spikes and plunges.
According to the industry on the 14th, Binance Holdings Ltd. plans to gradually introduce the "price range execution rule (PRER·Spot Price Range Execution Rule)" for spot transactions to prevent abnormal executions in a rapidly changing market. The PRER feature is being evaluated as a market protection mechanism similar to a circuit breaker. A circuit breaker is a mechanism that halts transactions when there is a sharp fluctuation in asset prices.
With this feature, Binance Holdings Ltd. sets an acceptable price range for a specific asset, and if a user's order price falls outside this range, it can restrict or cancel execution. Unlike limit orders set by users, the exchange intervenes in the execution process.
Virtual assets have no limits on daily gains or losses, so they can surge dozens of times or fall by nearly 100% in a single day. The Bank of Korea, in its "2025 Payment and Settlement Report" released the previous day, also proposed introducing a mechanism like the stock market's circuit breaker on domestic virtual asset exchanges.
Paddock pumping has often appeared on domestic virtual asset exchanges. Because virtual assets can be listed on multiple exchanges worldwide, if the price spikes abnormally on one exchange, traders can buy cheaply elsewhere, transfer the virtual assets, and seek arbitrage. However, when an asset is designated as an issue to watch for transactions, deposits and withdrawals between exchanges are halted, and certain groups exploit this to manipulate prices artificially.
The Financial Supervisory Service said on Feb. 9 that it would eradicate paddock pumping and conducted a planned probe into unfair practices, but sharp surges stemming from price rigging are still occurring.