Binance, the largest cryptocurrency exchange in terms of trading volumes, has tightened the criteria for token listings, as reported by Bloomberg, citing sources familiar with the matter. The objective behind these changes is to strengthen the protection of investors on the platform.
Binance, the largest cryptocurrency exchange in terms of trading volumes, has tightened the criteria for token listings, as reported by Bloomberg, citing sources familiar with the matter. The objective behind these changes is to strengthen the protection of investors on the platform.
Last year, Binance agreed to pay a fine of US$4.3 billion for money laundering violations and is now focusing more on protecting investors rather than attracting coin listings, Bloomberg said citing a senior Binance executive. last month.
Sources familiar with the matter revealed that crypto projects seeking to list on Binance now face stricter conditions. These include a prolonged “cliff period” during which tokens cannot be sold, a larger allocation of coins to market makers, and the need for a security deposit. These changes began to be implemented in the latter part of the previous year.
Sources added that Binance has communicated these changes verbally to stakeholders involved in the token listings, and specific requirements may vary from deal to deal.
Binance Quietly Makes Changes to Token Listing Criteria
As part of the changes to the token listing process, Binance is now requiring projects to accept cliff periods extending to at least a year, compared to the previous maximum of six months, the sources claimed. Additionally, the exchange requires that a higher proportion of tradable tokens be reserved for market makers, ensuring sufficient liquidity in certain cases.
In response to Bloomberg’s queries, Binance emphasized that it does not impose lockup periods for listed projects, allowing each project to independently determine its token acquisition schedule.
However, the company acknowledged the requirement for some projects to provide a security deposit before listing tokens. These deposits, which typically amount to several million dollars, serve as protection for Binance in cases where the issuer does not meet listing conditions.
Despite the stricter rules, the exchange’s dominance in cryptocurrency spot trading does not appear to be affected and is showing signs of recovery after a prolonged decline. Binance has notably expanded its listing lead among prominent exchanges recently.
