Binance has been at the heart of the debates since the collapse of FTX. Recently, the US Financial Crimes Enforcement Network cited his name in a money laundering case with Bitzlato. Authorities also criticize Binance for adopting a lax KYC procedure. Regarding this last point, the exchange has taken drastic measures to change things.
Binance ready to withdraw all non-compliant NFTs!
The largest crypto exchange by market capitalization has decided to adopt new KYC rules. It turns out that Binance has announced stricter rules for the management of its NFT service. Cointelegraph reported the information in a tweet on January 19, 2023. The outlet said: “NFT collections that do not meet the new minimum requirements will be delisted from Binance NFT on February 2“.
Binance planned to withdraw any NFT collection with low trading volume of its ecosystem. He pointed out that an average trading volume will be considered low if on a daily basis it is less than $1000. Obviously, only the collections listed on the crypto platform before the implementation of the new rules are affected.
The exchange clarified that this will specifically affect works that were registered before October 2, 2022. Also, the calculation to assess the exchange volume will be based on a specific period. That said, only transactions made between November 1, 2022 and January 31, 2023 will be considered.
At the same time, the crypto exchange intends to carry out a periodic review of the NFT collections registered on its platform. He will then not hesitate to remove from his list any collection that does not meet the defined standards. Another of the new rules of Binance prohibits NFT artists from minting more than five tokens per day for a collection.
This new measure will come into effect on January 22, 2023. In addition, all sellers will now have to pass the KYC verification stage to obtain their registration on Binance NFT. Additionally, the exchange stated, “Users can report NFTs or Collections that may be in violation of Binance’s NFT Minting Rules and Terms of Service“.
The crypto exchange Binance no longer intends to miss anything with its NFT-focused service. He said he has a due diligence team actively investigating fraud reports. This team will also ensure to verify complaints about the violation of the NFT collections rules. It will then take the appropriate measures.
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