Leading crypto exchange Binance is set to delist NFTs with low trading volume amid a change in its KYC rules. This is according to a statement made recently through its official channels. Starting the second day of next month, the platform will delist all NFTs listed before October 2, 2022. However, not all of them, but only those with less than $1,000 in daily trading volume between November 1, 2022, and January 31, 2023.
Additionally, starting January 21, NFT artists can only mint up to five digital collectibles per day. In the past, the platform’s NFT arm has required sellers to complete “Know Your Customer” (KYC) verification and have at least two followers before they could list their pieces. However, increased scrutiny from authorities has forced the platform to beef up its KYC rules.
Binance promises to engage in a periodical review of NFT listings and recommend delisting those that don’t “meet its standards.” Also, users of the platform can report collections “that may be in violation of its minting rules and terms of service.” The platform can then review and take appropriate action.
That said, delisting of all NFTs that don’t meet the new requirements will begin on February 2, 2023. However, they will still appear in users’ wallets.
Why Binance Feels The Need To Delist NFTs With Low Trading Volume On Its Platform
Binance began as a basic crypto exchange, but later branched out to become a significant player in the NFT market. The growth has something to do with its dedication to serving all areas of crypto. As a result, it provides a wide range of services such as spot crypto trading, derivatives, NFT trading, staking, and a launchpad, among many others.
Lately, the platform has faced intense scrutiny from authorities, which, in turn, has forced it to tighten up its platform security.
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Web3 Investigator. Long term investor in Cryptocurrencies.