The exchange will delist NFTs with low trading volume and listed prior to new KYC rules starting February.
According to a Jan. 19 announcement by Binance, the cryptocurrency exchange has tightened its rules for nonfungible tokens, or NFT, listings. Starting Feb. 02, 2023, all NFTs listed on Binance before Oct. 2, 2022, and have an average daily trading volume lower than $1,000 between Nov. 1, 2022, and Jan. 31, 2023, will be delisted. In addition, after Jan. 21, 2023, NFT artists can only mint up to five digital collectibles per day.
Binance NFT requires sellers to complete know-your-customer (KYC) verification and have at least two followers before listing on its platform. In addition to the revised rules, Binance said it would forthwith “periodically review” NFT listings that do not “meet its standards” and recommend them for delisting.
“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.”
All digital collectibles not meeting the aforementioned two requirements will be automatically delisted by Feb. 02, 2023. The delisted assets will still appear in users’ wallets afterward. Binance has come under intense scrutiny by regulators since last year over allegations of lax KYC measures and their role in processing illicit funds, which the exchange has denied.
Amidst the Bitzlato money laundering allegations that surfaced on Jan. 18, the United States Financial Crimes Enforcement Network (FinCEN) claimed that Binance was among the “top three receiving counterparties” to Bitzlato. As previously reported, Binance was among exchanges that continued to serve non-sanctioned Russians following new sanctions from the European Union.