Tiger Research calls for regulatory framework for crypto market-maker issuer contracts

Tiger Research, an Asia-based Web3 research and consulting firm, stated that distrust of market makers arises from price-manipulation firms posing as market makers. The report highlights that legitimate market makers reduce spreads and continuously provide counterparties, thereby lowering trading costs for investors. It notes that crypto market makers serve a similar function as those in traditional finance but operate in a fragmented market lacking formal contracts with exchanges, and contracts with issuers remain undisclosed. Tiger Research emphasized that a basic law on digital assets presents an opportunity to address these issues. However, the proposed bill permits market making commissioned by exchanges while recognizing contracts commissioned by token issuers only for the first six months post-listing. The firm stressed that issuer contracts, where most problems occur, must also be included in the regulatory framework.

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