Binance News: Binance Bans Market Maker Over Trading Irregularities for GPS and SHELL

Binance, one of the largest cryptocurrency exchanges globally, has taken decisive action against a market maker involved in irregular trading activities for two specific tokens, GoPlus Security (GPS) and MyShell (SHELL). Here’s a closer look at what happened and the implications of this decision.

Binance Bans Market Maker for GPS and SHELL After Trading Irregularities

Binance has banned a market Maker involved in irregular trading activities for GoPlus Security (GPS) and MyShell (SHELL). Following an internal investigation, Binance identified misconduct by the market maker who serviced both projects. In response, Binance has offboarded the market maker and permanently barred them from conducting any further market-making activities on the platform. Additionally, the platform has confiscated the market maker’s proceeds, which will be used to compensate impacted users. Binance emphasized that all approved market makers are required to follow strict guidelines.

SEC Moves to Scrap Rule That Could Have Regulated Crypto Exchanges

Acting Chair Mark Uyeda is pushing to withdraw a rule introduced under former Chair Gary Gensler that would require more trading venues, including those dealing with digital assets, to register with the agency. The proposal sought to redefine what qualifies as an exchange by including certain “communications protocols,” which could have affected multiple digital asset businesses. Uyeda argues that the definition was unclear and risked regulating protocols that were never intended to fall under the SEC’s oversight. The rule has been under consideration for years and would have been significantly damaging for major exchanges had it been implemented.