Binance strengthens regulations for non-fungible token (NFT) listings

Binance strengthens regulations for non-fungible token (NFT) listings

 

Binance, one of the leading cryptocurrency exchanges, has announced new rules for listing non-fungible tokens (NFTs) on its platform. The move is aimed at increasing transparency and compliance with know-your-customer (KYC) regulations. Starting February 2, 2023, Binance will delist all NFTs that were listed prior to October 2, 2022 and have an average daily trading volume lower than $1,000 between November 1, 2022, and January 31, 2023. Additionally, starting January 21, 2023, NFT artists will be limited to minting five digital collectibles per day. The exchange will also "periodically review" NFT listings that do not meet its standards and recommend them for delisting. 

The exchange has also introduced new KYC requirements for sellers of NFTs. These sellers will have to complete KYC verification and have at least two followers before listing on the platform. Users will also be able to report NFTs or collections that may be in violation of Binance's NFT minting rules and terms of service. The exchange's due diligence team will actively review such reports and take appropriate actions. 

Binance has been under intense scrutiny from regulators over allegations of lax KYC measures and its role in processing illicit funds, which the exchange has denied. However, with the tightening of regulations in the crypto space, exchanges are being forced to take a more cautious approach to listing new assets. These new rules are a part of Binance's efforts to comply with regulations and maintain transparency in the NFT market.