Binance tightens rules for token issuers and market makers

Cryptocurrency exchange Binance announced on Wednesday stricter rules for token issuers and liquidity providers on its platform following criticism of digital asset market practices during the October market crash.

The world’s largest crypto exchange stated in a blog post that crypto projects are now prohibited from having revenue-sharing models with market makers. Market makers are also banned from engaging with projects to manipulate prices or distort token liquidity. Binance said it will take “swift and decisive action against any violations,” including blacklisting market makers.

“We are committed to ensuring transparency and fairness across the crypto industry,” Binance said. “Protecting our users and maintaining a fair and reliable trading environment are our top priorities.”

Crypto exchanges have faced increased scrutiny following the October 10 crash, which wiped out $19 billion in leveraged positions. The broader digital asset market has yet to fully recover from the downturn.

Under the new rules, crypto projects must disclose details about their market makers to Binance, including legal entities and contract terms.

Binance also outlined six red flags indicating potentially manipulative behavior by market makers. These include a “constant sell order pattern” without corresponding buy-side activity and “coordinated” token deposits and selling activity across multiple exchanges.

In January, Changpeng “CZ” Zhao, co-founder and former CEO of Binance, said allegations that the platform was responsible for last October’s market crash were “far-fetched.”

See also: "Binance delists several altcoin pairs from spot trading: details"

#Binance #Crypto Regulations

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