Cryptocurrency exchange Binance has tightened regulations on altcoin listing procedures.
Binance has tightened the cryptocurrency listing process to increase investor protection. According to Bloomberg, the changes include factors such as a 1-year lock-up period for listed altcoin projects, additional security deposits, and a reduction in the coin allocation to market makers.
It is believed that these rules were implemented at the end of last year and have been applied to every project listed since then.
According to the details released, Binance has chosen to implement a minimum one-year lock-up for the altcoin projects it lists. During this time, a certain amount of altcoin will be locked and secured in a software known as a “smart contract” and will not be transferable.
This is aimed at preventing investors from sudden sales and losses caused by price fluctuations.
Binance also requires security deposits from some cryptocurrency projects. In case the project fails to meet the conditions, Binance will have the deposit to protect investors.
With these steps, both investor security is ensured and Binance aims to become more compliant with regulations.
