Binance Urges Proactive Oversight of Market Makers

The biggest crypto exchange in the world issued a five-point set of due diligence guidelines for engaging with market makers in a 25 Mar blog that was addressed to crypto projects and users. It notes that not all market makers operate as stabilizing influences and shock absorbers during periods of volatility.

Binance advises users to:

• Assess liquidity depth, not just volume;
• Monitor price behaviour relative to volume;
• Evaluate market balance:
• Watch for irregular trading patterns; and
• Avoid making rushed decisions.

Liquidity vacuum exacerbated volatility

The comments from the exchange come as the crypto market attempts to steady after Bitcoin went from a record high of $126,080 on 6 Oct 2025 to a massive selloff on 10 Oct that wiped out $19bn in leveraged positions. The flagship token sank to a 10-month low below $60,000 in February and has since been in a choppy range around $70,000 while the Middle East conflict stresses the global economy.

A liquidity vacuum where market makers failed to provide stability exacerbated the volatility of the market. By issuing the guidance, Binance is seeking to shore up trust and urge the industry to prevent the cascading sell-offs that arise during periods of extreme fear.

Blacklisting errant market makers

As the dominant global cryptocurrency spot exchange with approximately 40% of the market share, Binance has much at stake. It vowed to take swift and decisive action against any misconduct, including blacklisting market makers who breach its rules.

The six red flags Binance listed are aggressive selling that conflicts with token distribution plans, one-sided trading behaviour and coordinated sell-offs across platforms. It also offered a six-point checklist of best practices for token launches or listings, urging projects to stick strictly to token release schedules and avoid token dumping.

The full guidelines are available in the Binance blog.