Binance, one of the world’s largest crypto exchanges, has announced new guidelines regarding market maker activities, imposing significant obligations on token issuers and other players in the space. The updated rules aim to increase market transparency and protect users from potential manipulation risks.
Under the new regulations, projects issuing tokens will be required to promptly report to platforms the identity of market makers, the teams behind them, and contract details. Binance also explicitly prohibits profit sharing or revenue guarantee agreements with market makers. Additionally, token lending agreements must clearly and transparently define how the tokens will be used.
The exchange said severe sanctions will be applied to market makers and projects that do not follow the rules. In this regard, it was indicated that violating parties may be blacklisted and permanently excluded from the platform. Additionally, it was announced that an official reporting mechanism for reporting suspicious activity has been activated.
The move follows recent allegations within the crypto community that some market makers are engaging in manipulative behavior. In particular, allegations of large-scale sales, sudden price declines, liquidity manipulation, and trades targeting specific investors have sparked controversy within the industry.
*This is not investment advice.
