Binance, the world’s largest crypto exchange by trading volume, has rolled out tighter rules for token issuers and the market makers that support them, aiming to boost transparency and curb practices that can distort trading.
Under the new guidelines, projects listing tokens on Binance must disclose key details about their market-making partners, including the partner’s identity, legal entity and the terms of their contract. The exchange has also outlawed certain incentive structures—specifically profit-sharing and guaranteed-return arrangements—which it says can create conflicts with fair market behavior. Token lending agreements now need to explicitly state how borrowed tokens may be used.
“These changes are intended to help projects conduct stronger due diligence on their market-maker partners and remind users to be mindful of market conditions,” a Binance spokesperson said in an email, adding the exchange wants to foster “a fair and efficient marketplace, and we do not tolerate misconduct.”
The policy targets market makers—firms that typically sit behind the scenes, posting buy and sell orders to keep markets liquid and limit sharp price swings. Healthy market making can lower slippage and make it easier for users to trade, particularly after a new token listing. But Binance warned that problems arise when market makers behave less like neutral liquidity providers and more like sellers with hidden incentives.
Examples Binance flagged include:
- Selling that conflicts with an issuer’s token release schedule
- One-sided trading that pushes prices in one direction
- Activity that inflates reported volume without producing natural price movement
Binance said it will take “swift, decisive action against any misconduct,” including blacklisting offending market makers. The exchange did not make clear whether it will publicly name firms that are blacklisted.
The move signals increased scrutiny on the often opaque relationships between token projects and their liquidity providers, and could push more token teams to improve disclosure and contract terms to satisfy exchanges and users alike.
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