Binance has intensified its oversight of market makers following the discovery of rule violations by one entity. The exchange announced on Mar. 9 that it had terminated the firm’s market-making activities and confiscated its proceeds to compensate affected users. While the full details of the compensation plan are yet to be disclosed, Binance’s actions signal its commitment to protecting market integrity and enforcing compliance. Binance cracks down on manipulation Market makers play a crucial role in cryptocurrency exchanges by ensuring liquidity and reducing price volatility. However, when these entities engage in unethical practices such as order book manipulation, they can create an unfair trading environment. Binance has specific rules for market makers, including maintaining a balanced order book, ensuring liquidity, and preventing disruptive trading behaviour. The entity found violating these standards faced immediate termination, as Binance reaffirmed its zero-tolerance policy toward market manipulation. The impact of the announcement rippled through the market, with investor uncertainty leading to a 14% drop in GPS and an initial 4% decline in SHELL before the token recovered. This underscores how enforcement actions by major exchanges can influence cryptocurrency prices and investor sentiment. New governance model empowers users Binance’s enforcement action is part of a broader initiative to enhance transparency and user involvement. On Mar. 7, the exchange introduced a governance model allowing users to vote on token listings and delistings. Users holding at least 0.01 BNB can now participate in deciding which projects are listed or removed from the platform, giving them a more direct role in shaping Binance’s trading landscape. This governance shift aligns with Binance’s strategy to increase user confidence and reduce the influence of bad actors in the market. By incorporating community participation in token decisions, Binance aims to make listings more democratic and resistant to potential manipulation. The model is also expected to bring greater accountability to projects seeking exchange listings. Binance expands listing options Alongside governance changes, Binance has introduced new features to enhance the token listing process. The exchange now offers pre-market trading for select tokens, direct spot listings, and Launchpool farming incentives. Binance has reiterated that it does not charge listing fees and has pledged to disclose when projects allocate marketing budgets for their listings. These funds will be distributed back to users in the form of airdrops, ensuring greater transparency in promotional activities. Binance’s recent moves reflect a broader trend within the cryptocurrency industry, where exchanges are under increasing pressure to ensure fair trading practices. Market makers, while essential for liquidity, must operate within strict guidelines to prevent market distortion. By terminating non-compliant entities and introducing governance and listing reforms, Binance is positioning itself as a leader in fostering a fair and transparent trading environment. Zhao urges long-term focus Changpeng Zhao, Binance’s founder, weighed in on the state of the cryptocurrency industry in a Mar. 10 post on X. He highlighted concerns about excessive short-term speculation, stating that too much capital is chasing quick profits rather than supporting ethical projects focused on long-term growth. CZ 🔶 BNB @cz_binance · Follow Unpopular opinion:In crypto, too much money is spent chasing small, quick gains. Focus on ethical teams that build for the long term. Big money is built slowly with stamina. 9:54 PM · Mar 9, 2025 0 Reply Copy link Read more on Twitter Zhao’s remarks reflect an ongoing challenge within the crypto sector, where speculative trading often overshadows the development of sustainable blockchain projects. With regulatory scrutiny increasing worldwide, Binance’s latest enforcement actions and governance updates are aimed at maintaining user trust and compliance with evolving market standards. By taking decisive steps against market manipulation and expanding user participation in token decisions, the exchange is reinforcing its role as a key player in shaping the future of digital asset trading. The post Binance cracks down on market manipulation, terminates violator and seizes proceeds appeared first on Invezz
