Binance Introduces Revised Token Listing Guidelines in Response to Regulatory Examination, Striving for Enhanced Safety Measures
Binance, the leading cryptocurrency exchange, is implementing new measures in its token listing policy to address regulatory concerns and ensure a safer trading market for investors. These changes include longer “cliff periods” for token sales, increased allocations for market makers, and the requirement of security deposits from projects seeking listings.
According to anonymous sources familiar with the matter, Binance has extended the cliff period for new listings to at least one year, a significant increase from the previous maximum of six months. During this period, a portion of the total coin supply is locked up in a smart contract and gradually released according to a vesting schedule. Market makers, who play a crucial role in maintaining liquidity, will be allocated tokens with specific withdrawal restrictions.
By demanding a greater share of tradable tokens for market makers, Binance aims to ensure sufficient liquidity. However, the exchange clarified that it does not impose lock-in periods for listed projects, allowing each project to independently decide on their token vesting schedule. While “monthly limits for certain withdrawals” have been introduced, specific details have not been disclosed.
Binance’s decision to tighten listing standards stems from past criticisms of exchanges for their loose oversight, which has led to market manipulation and losses for smaller investors. Despite concerns about the potential impact on profitability and the difficulty of listing new tokens, Binance’s market share in spot crypto trading remains strong.
Under the leadership of new CEO Richard Teng, who took over from co-founder Changpeng “CZ” Zhao in November, Binance is committed to enhancing compliance measures and strengthening partnerships with global regulators. Following an agreement with US authorities, Zhao resigned and is currently awaiting sentencing. Yi He, another co-founder of Binance and Zhao’s partner, is leading an initiative to revamp the token listing process.
In February, she announced on social media platform X that up to $5 million in rewards would be given for information on proven corruption within Binance’s team. She emphasized the need for enhanced internal management and warned that leaks could result in termination. A study comparing token listings between 2017 and 2021 showed that Coinbase’s selection process was stricter than Binance’s, leading to better initial returns on Coinbase, although both platforms had positive early returns.