Binance Holdings Ltd. has heightened its requirements for listing new digital tokens, implementing measures aimed at enhancing investor protections on its platform.
According to individuals familiar with the matter, crypto projects seeking to list tokens on Binance are now required to agree to a significantly longer “cliff period,” during which no coins can be sold. Additionally, they must set aside more coins for market makers and make a security deposit. These changes began to take effect late last year.
While Binance has verbally communicated these changes to participants in token listings, the specific requirements can vary between deals. Binance, however, has denied requesting a greater share of tokens to be set aside for market makers, stating that project teams decide on this themselves.
Despite the stricter rules, Binance’s share of spot crypto trading has not been negatively impacted. The platform’s trading has begun to recover from a nearly yearlong decline, and Binance has recently widened its lead in listings among major exchanges.
However, executives involved in listings on Binance have expressed concerns that the changes could impact their profitability and make listing new tokens excessively burdensome. One executive has reportedly voiced complaints to Binance executives about the tougher requirements.
Last year, Binance agreed to pay a $4.3 billion US fine over money-laundering violations, leading the exchange to place more emphasis on investor protections over attracting coin listings, as stated by a senior executive last month.
Exchanges have faced criticism for their loose oversight of listings, with instances of crypto projects or market makers selling large amounts of tokens shortly after trading begins, leaving smaller investors with losses.
Binance’s new requirements for token listings include a longer cliff period, with projects now required to agree to cliff periods of at least a year, up from no more than six months previously. Additionally, the exchange is asking for a greater share of tradable tokens to be set aside for market makers in some cases to ensure adequate liquidity.
Binance has confirmed that some projects must agree to make a security deposit before listing tokens. These deposits, typically worth a few million dollars, are meant to handle extreme situations and primarily safeguard the interests of investors.
Rather than imposing a new formal set of listing requirements that apply to all deals, Binance has communicated these stricter terms to projects seeking to list tokens on its platform.
Binance Tightens Token-Listing Process, Introduces Security Deposits
Binance Holdings Ltd. has updated its requirements for listing new digital tokens, aiming to enhance investor protections on its platform.
According to sources familiar with the matter, crypto projects seeking to list tokens on Binance must now agree to a significantly longer “cliff period,” during which no coins can be sold. Additionally, they are required to set aside more coins for market makers and make a security deposit. These changes began to take effect late last year.
While Binance has verbally communicated these changes to participants in token listings, the specific requirements can vary between deals. Binance, however, has denied requesting a greater share of tokens to be set aside for market makers, stating that project teams decide on this themselves.
Despite the stricter rules, Binance’s share of spot crypto trading has not been negatively impacted. The platform’s trading has begun to recover from a nearly yearlong decline, and Binance has recently widened its lead in listings among major exchanges.
However, executives involved in listings on Binance have expressed concerns that the changes could impact their profitability and make listing new tokens excessively burdensome. One executive has reportedly voiced complaints to Binance executives about the tougher requirements.
Last year, Binance agreed to pay a $4.3 billion US fine over money-laundering violations, leading the exchange to place more emphasis on investor protections over attracting coin listings, as stated by a senior executive last month.
Exchanges have faced criticism for their loose oversight of listings, with instances of crypto projects or market makers selling large amounts of tokens shortly after trading begins, leaving smaller investors with losses.
Binance’s new requirements for token listings include a longer cliff period, with projects now required to agree to cliff periods of at least a year, up from no more than six months previously. Additionally, the exchange is asking for a greater share of tradable tokens to be set aside for market makers in some cases to ensure adequate liquidity.
Binance has confirmed that some projects must agree to make a security deposit before listing tokens. These deposits, typically worth a few million dollars, are meant to handle extreme situations and primarily safeguard the interests of investors.
Rather than imposing a new formal set of listing requirements that apply to all deals, Binance has communicated these stricter terms to projects seeking to list tokens on its platform.
