Binance has been at the center of debate 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 the latter point, the exchange has taken drastic steps to turn things around.
Binance Ready to Retire All Non-Compliant NFTs!
The largest cryptocurrency exchange by market capitalization has decided to adopt new rules KYC. It turns out that Binance has announced stricter rules for the management of its NFT service. Cointelegraph reported the information in a tweet on Jan. 19, 2023. The outlet said: “NFT collections that do not meet the new minimum requirements will be removed from Binance NFT on February 2“.
Binance has plans to retire any NFT collection with low trading volume of its ecosystem. He stressed that an average trading volume will be considered low if it is below $1000 on a daily basis. Of course, only collections listed on the crypto platform prior to the implementation of the new rules are affected.
The exchange clarified that this will specifically affect works registered before October 2, 2022. In addition, the calculation to evaluate 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.
Periodic review
At the same time, the cryptocurrency exchange intends to carry out a periodic review of the NFT collections registered on its platform. It will therefore not hesitate to remove from its 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 go into effect on January 22, 2023. Furthermore, all sellers will now need to pass the KYC verification stage to get their registration on Binance NFT. Additionally, the exchange stated: “Users can report NFTs or collections that may violate NFT minting rules and Binance’s Terms of Service“.
Cryptocurrency exchange Binance no longer wants to miss anything with its NFT-focused service. It said it has a due diligence team that actively investigates fraud reports. This team will also ensure that complaints about it Break the rules NFT collections. It will then take the appropriate measures.
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Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to convey information related to this ecosystem with my pen.