Binance, a leading cryptocurrency exchange, is stepping up its investor protection measures by introducing more stringent criteria for assets aiming to be listed. Crypto projects must now consent to extended lock-up phases for their tokens, ensuring they cannot be sold for an increased duration. Additionally, they are required to allocate a greater number of tokens to market makers and provide a security deposit. These adjustments have been conveyed verbally to participants and may differ slightly case by case.
Implementing Tougher Standards
Despite these rigorous measures, Binance’s market share in spot cryptocurrency transactions has been on a steady rise, recovering from a previous decline. The exchange has also cemented its position as a leader in token listings among major trading platforms. The precise impact of these changes on token listings’ profitability remains a matter of debate among executives.
Challenges for New Listings
Executives tasked with managing Binance listings have expressed concerns that the new requirements may diminish their profit margins and add significant challenges to listing new assets. One executive has even voiced their grievances directly to Binance’s management team. The new policies reflect a shift in Binance’s approach, following a substantial fine paid last year for failing to comply with anti-money laundering regulations. Binance is now focusing on enhancing investor safeguards rather than the expeditious removal of token listings.