Leading cryptocurrency exchange Binance Holdings Ltd. is making an effort to ensure the safety of investors on its platform by censoring listed tokens.

New Rules for Token Listing on Binance

In the past, crypto investors have been exposed to unverified digital assets that were part of scams like rug pulls. These schemes eventually leave investors with massive losses running into millions of dollars. Events like this end up drawing the attention of regulators who already think crypto bears a lot of high risks. 

To mitigate the advent of such false crypto projects, Binance has chosen to tighten its requirements for listing digital tokens on its platform according to a Bloomberg report

Consequently, any crypto project wishing to leverage the Binance platform to list their token must first agree to a long “cliff period” during which a certain share of the total coin supply is locked up in a “smart contract.” 

During this time, there would be no usage of the coin, that is, it cannot be sold. According to people who are familiar with the matter but asked to remain anonymous, this crypto project would be required to lay aside some more coins for market markers as well as make a security deposit.

Binance Need to Push for Investor Protection

Per the Bloomberg report, Binance has been working on implementing the change for a long time now. The new policy has been communicated verbally to participants interested in listing their tokens. It is worth noting that the terms and requirements may vary between deals. The top exchange is making these changes right in the middle of its recovery from a tumultuous 2023 which saw the United States SEC levy a heft fine on it.

The securities regulator sued Binance for some charges including the violation of federal securities law. To compound this, the exchange agreed to a $4.3 billion settlement with the Department of Justice (DoJ), a move that coincided with the resignation of its Co-founder and former CEO Changpeng ‘CZ’ Zhao. 

Based on these historical precedents, the emphasis on token listing regulation and investor protection is not far-fetched. 

“Token listings are a double-edged sword,” Bader Al Kalooti, Binance’s head of Middle East, Africa, Southern Asia, and Turkey, had previously stated in a February interview. “Obviously, the more tokens you have the better it is to drive user growth, but at the same time, we’re no longer just prioritizing growth over user safety and security.”

Considering that many exchanges have been criticized in the past for their lackadaisical attitudes toward token listing, it is likely that these other crypto trading platforms may borrow a leaf from Binance and implement similar requirements to get market regulators off their backs.

The post Binance To Adjust Token Listing Rules Amid Heated Regulatory Crackdown: Report appeared first on CoinGape.

Earn more CFN tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://cryptoforum.news0

CFN Comment Policy

Your comments MUST BE constructive with vivid and clear suggestion relating to the post.

Your comments MUST NOT be less than 5 words.

Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.

Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.

Constructive REPLY to comments is allowed