NFTS WITH LOW TRADING VOLUME WILL BE DELISTED BY BINANCE
Beginning next month, Binance will delist NFTs with minimal trading volume from its platform as it updates its KYC regulations. The action was taken two days after FinCEN accused the platform of being involved in a money-laundering scheme.
The platform will delist any NFTs listed before October 2, 2022, and will not have an average of $1,000 in daily trading volume between November 1, 2022, and January 31, 2023, according to a corporate statement released on January 19. The new regulations also limit artists’ minting to 5 NFT each day.
Binance NFT previously made little demands on its consumers. A seller might proceed to list their NFTs as long as they had finished the KYC verification and had at least two followers. But going ahead, the corporation will periodically evaluate NFTs and delist those that don’t fit its requirements.
Official Binance Announcement NFT: t.co/U3GMsmI6MF
19 January 2023 — Binance NFT (@TheBinanceNFT)
Users are also urged to report NFTs or collections that may be against the platform’s “minting guidelines and terms of service.” The platform’s due diligence team will analyze any reports that are received and take the necessary action.
On February 2, the actual delisting will start. However, users’ wallets will still contain the delisted items.
What Made Binance Tighten Its Regulations?
Following FinCEN’s classification of Binance as one of the top three platforms receiving laundered Bitcoin via Bitzlato, the company modified its NFT listing requirements. Authorities think the exchange’s KYC requirements are lax. The platform is now under pressure to take action before it’s too late. Having said that, Binance NFT has succeeded, much like the majority of the platform’s goods. Since its debut in June of last year, the NFT arm has been able to sign up over 600,000 weekly active users. Additionally, it has assisted in the development of approximately 2.5 million NFTs in a variety of areas.
The top cryptocurrency exchange in the world, Binance, has also introduced a staking program that is only available to owners of APE NFTs. Through this program, they can stake their BAYC and MAYC NFTs in return for daily ApeCoin incentives.