Binance has introduced new mandatory guidelines targeting token issuers and liquidity providers. The set of rules requires projects to disclose the identity of their market makers, their legal entity, and specific contractual terms. Furthermore, the platform has banned profit-sharing agreements and guaranteed returns to eliminate incentives that may conflict with fair trading practices.
This measure aims to bring transparency to a market sector that often operates in the shadows, minimizing risks of price manipulation or artificial volume inflation. By enforcing greater due diligence, Binance intends to protect users from massive sell-offs that bypass token vesting schedules and from behaviors that create a false sense of liquidity. The exchange warned that it will take decisive action, including blacklisting providers that engage in malpractice.
In summary, the initiative reinforces the integrity of the ecosystem by separating neutral liquidity provision from incentivized selling strategies with hidden motives. The next step for projects active on Binance will be to update their token loan agreements and compliance structures to align with these transparency standards.
Source:https://www.binance.com/en/blog/education/3378047125698186214
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