Binance has released a new set of guidelines targeting market makers operating on its platform. The rules require market makers to disclose their identity, contract terms, and other relevant information. The move represents a formal effort by the exchange to increase transparency and accountability among participants who provide liquidity to its markets.
Among the key provisions, the guidelines prohibit profit-sharing and guaranteed-return arrangements between market makers and other parties. Binance states that these types of arrangements create conflicts of interest that can undermine fair trading conditions. By banning such agreements, the exchange aims to reduce the potential for manipulative behavior on its platform.
Binance has also outlined specific forms of misconduct it intends to monitor and act against. These include selling tokens in a manner that conflicts with established release schedules, as well as artificially inflating trading volume. Both practices can distort market conditions and mislead other participants about the true state of liquidity and demand.
The exchange says it will actively monitor market maker activity to ensure compliance with the new standards. Enforcement actions are expected to follow in cases where violations are identified. The guidelines signal a broader commitment by Binance to maintain market integrity as regulatory scrutiny of cryptocurrency exchanges continues to grow globally.
The introduction of these rules reflects ongoing efforts within the crypto industry to address concerns about market manipulation and opaque trading practices. Market makers play a central role in ensuring that assets can be bought and sold efficiently, but their activities have at times drawn criticism when conducted without sufficient oversight. Binance’s new framework seeks to bring greater structure and accountability to these relationships.
Originally reported by CoinDesk.
