Binance Unveils Guidelines to Curb Market Manipulation

Binance, the world's largest cryptocurrency exchange by trading volume, unveiled new guidelines on Wednesday aimed at curbing market manipulation by requiring token issuers to disclose details of their market maker partnerships and prohibiting certain incentive structures.

The rules mandate that projects launching or listing tokens on the platform reveal the identities, legal entities, and specific contract terms of their market makers. These liquidity providers are essential for maintaining buy and sell orders, narrowing bid-ask spreads, and stabilizing prices, particularly for newly listed or low-volume assets. However, Binance emphasized that undisclosed or misaligned arrangements can lead to artificial price movements and erode trader confidence.

Central to the guidelines is a ban on profit-sharing agreements and guaranteed returns between token issuers and market makers. Such deals, the exchange stated, create conflicts of interest that may encourage providers to prioritize selling over neutral liquidity support. Token loan agreements must now explicitly outline how borrowed assets will be used, preventing covert distributions that flood the market prematurely. Binance also...