and liquidity providers on its platform following criticism of digital asset market practices during the October market crash.

The world's largest cryptocurrency exchange announced in a blog post that crypto projects are now prohibited from having revenue-sharing models with market makers. Market makers are also prohibited from engaging with projects to manipulate prices or distort token liquidity. Binance stated that it will take "swift and decisive action against any violations," including blacklisting market makers.

"We are committed to ensuring transparency and integrity across the crypto industry," Binance stated in a blog post. "Protecting our users and maintaining a fair and secure trading environment comes first."

Cryptocurrency exchanges have faced increased scrutiny since the October 10 crash, which wiped out $19 billion in leveraged rates. The broader digital asset market has yet to recover from the crash.

Under the new regulations, crypto projects must disclose to Binance the details, legal entity, and contract terms of the market makers they work with.

Binance has identified six red flags indicating manipulative behavior by market makers. These include a "pattern of persistent sell orders" without corresponding buy activity, and "coordinated" token deposits and sell activity across multiple cryptocurrency exchanges.

In January, Changpeng "CZ" Zhao, co-founder and former CEO of Binance, said accusations that the platform was responsible for the cryptocurrency market crash last October were "far-fetched."