Leading web3 marketplace exchange Binance constricts rules surrounding NFTs. The exchange plans to delist NFTs with low trading volumes, and those listed prior to the platform’s KYC rules in February. The new rules are introduced in accordance with new regulatory rules. Read on to learn more about this new rule by the crypto exchange giant.
What Are The New Rules For NFTs On Binance?
On January 19th, Binance announced that it has tightened its rules for NFT/digital asset listings on the platform. From February 2nd of this year, the platform delists all NFTs listed before Oct. 2, 2022, and with an average daily trading volume lower than $1,000 between Nov. 1, 2022, and Jan. 31, 2023. Moreover, after January 21st, 2023, NFT creators and digital artists are only allowed to mint five digital collectibles a 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 listing on their platform. The platform also states that it will review NFT listings that do not “meet its standards” periodically. If collections do not satisfy its guidelines, they are delisted from the platform. “Users can report NFTs or collections that may be in violation of Binance NFT minting rules and terms of service. Our due diligence team will actively review reports of fraud or rule violations and take the appropriate actions,” states Binance.
The delisting is to complete by February 2nd, 2023. Though the delisted assets will still appear in users’ wallets. This move is a result of Binance being under intense regulatory scrutiny since faltering KYC allegations against the platform. Moreover, there are allegations of processing illegal funds, that the platform has denied. NFTEvening delivers more on the story as it develops.