Binance tightens market maker rules and warns token issuers to disclose partners
Binance introduced new rules requiring token issuers to disclose market maker identities and banning profit-sharing or guaranteed return arrangements.Summary
Binance, the largest crypto exchange, has implemented stricter guidelines for token issuers and liquidity providers to foster a fair marketplace and prevent misconduct. The new rules mandate that projects must disclose their market maker's identity, legal entity, and contract terms. Furthermore, Binance explicitly bans profit-sharing and guaranteed-return arrangements between projects and market makers, citing that these can create incentives conflicting with fair trading. Token lending agreements must also clearly detail the usage of borrowed tokens. Binance stated these measures aim to ensure stronger due diligence by projects and remind users to be mindful of market conditions, warning that it will take swift action, including blacklisting, against any misconduct, such as activity that inflates volume without natural price movement.
(Source：CoinDesk)