According to Bloomberg, the cryptocurrency exchange Binance will now start adhering to different listing policies.
Binance is said to have tightened its token listing process in an effort to enhance investor protection.
This move comes as regulatory authorities around the world continue to oversee the operations of cryptocurrency exchanges.
According to anonymous sources, cryptocurrency projects looking to list their tokens on Binance now have to adhere to stricter rules. This includes agreeing to a longer “difficult period” during which no tokens can be sold, allocating more tokens to market makers, and providing a security deposit.
These changes have been in effect since the end of last year.
Despite the stricter regulations, Binance’s market share has begun to recover after a year-long decline.
However, some executives involved in listing on Binance have expressed concerns that the new requirements may reduce profits and make listing new tokens more burdensome.
An administrator is said to have forwarded their complaint to Binance’s management board.
Cryptocurrency exchanges have long faced criticism for loose oversight of listings.
Bader Al Kalooti, head of Binance in the Middle East, Africa, South Asia, and Turkey, acknowledged in a February interview that “listing tokens is a double-edged sword.” He emphasized that having more tokens can drive user growth, but Binance currently prioritizes user safety and security over growth.
In the “difficult period” Binance requires, a certain percentage of the total supply will be locked in a “smart contract.”
Binance now requires projects to accept a “difficult period” of at least one year, up from a maximum of six months.
In some cases, the exchange also requires a significant amount of tokens to be reserved for market makers to ensure sufficient liquidity.
Binance also confirmed that some projects are required to make a deposit before listing their tokens. These deposits, often worth millions of dollars, may be held by Binance if a company fails to meet listing requirements.
The exchange stated that these deposits are a preventive measure to handle extreme situations and primarily protect the interests of investors.
