Binance, the leading web3 marketplace exchange, tightens the rules surrounding NFTs. The exchange plans to remove NFTs with low trading volumes and those listed before the platform’s KYC rules in February. New standards are introduced in accordance with the new regulatory standards. Read on to learn more about this new rule from the crypto exchange giant.
What are the new rules for NFTs on Binance?
On Jan. 19, Binance announced that it has tightened its rules for NFT/digital asset listings on the platform. As of February 2 of this year, the platform removes all NFTs listed before October 2, 2022 and with an average daily trading volume below $1,000 between November 1, 2022 and January 31, 2023. Additionally, after January 21, 2023, NFT creators and digital artists can only mint five digital collectibles per day.
The Binance platform relies on KYC (Know Your Customer) verifications for its collections. Sellers must complete KYC and also have at least two followers before posting on their platform. The platform also claims that it will regularly review lists of NFTs that do not “meet its standards.” If the collections do not meet their guidelines, they are removed from the platform. “Users can report NFTs or collections that may violate Binance NFT minting rules and terms of service. Our due diligence team will actively review reports of fraud or rule violations and take appropriate action,” Binance states.
The delisting will be complete by February 2, 2023. Although the delisted assets will still appear in users’ wallets. This movement is the result of Binance come under intense regulatory scrutiny since the faltering KYC allegations against the platform. In addition, there are allegations of illegal funds processing, which the platform has denied. NFTevening offers more insight into the story as it unfolds.
All investment/financial opinions expressed by NFTevening.com are not recommendations.
This article is educational material.
As always, do your own research before making any type of investment.
