Binance requires market maker identity disclosure and bans profit-sharing, guaranteed returns
Binance tightened rules for market makers. Identity, legal entity, and contract terms must be disclosed. Profit‑sharing and guaranteed returns are banned.
Binance published new guidelines for token issuers and liquidity providers. Source: Binance blog.
Key changes:
- Full disclosure of market maker identity and mandates to the exchange. Policy details.
- Written trading parameters and ongoing post‑listing monitoring. Guidelines.
- Explicit ban on revenue/profit‑sharing models and guaranteed‑return deals. Restrictions.
- No large token offloads via market makers; stick to vesting/unlock plans. Token release rules.
Red flags Binance calls out:
- Selling against vesting schedules.
- One‑sided order books posing as “liquidity.”
- Coordinated dumping across venues.
- Mismatched volume vs. price, volatility from thin liquidity, large offloads. Risk indicators.
Enforcement:
- Swift action for violations, including blacklisting market makers that manipulate markets or breach release schedules. Enforcement.
Market impact:
- Cleaner books and fewer surprise dumps on new listings benefit retail.
- Smaller issuers and aggressive MMs lose off‑record guarantees and splits.
- Expect thinner liquidity on some pairs as aggressive players exit.
- Focus on order‑book depth and slippage over headline volume during adjustment. Implications.
