Binance to Delist Some NFTs
Based on the change in the KYC rules, the exchange will exclude NFTs that do not comply with the new regulations at the beginning of next month and will periodically survey all NFTs to see if they comply with the new rules.
Binance, one of the largest crypto exchanges, will be delisting NFTs with low trading volume in connection with a change to its KYC rules, following a statement it recently released through its official channels. On February 2, the platform will delist NFTs listed before October 2, 2022. However, not all NFTs will be delisted, only those with a daily trading volume of less than $1,000 between November 1, 2022, and January 31, 2023.
Previously, the platform required creators to complete KYC (Know Your Customer) verification and have at least two trackers before they could list their product on the exchange. However, increased scrutiny from authorities has forced the platform to tighten its KYC rules. In addition, starting January 21, the daily limit for minting new NFTs is limited to just five digital collectibles.
Binance promises to regularly review NFT lists and weed out those that "do not meet its standards." Any platform users can report collections “that may breach its minting rules and terms of service.” Binance will then verify them and take appropriate action if the terms are violated.
As mentioned, the delisting of all NFTs that do not meet the new terms will start on February 2, 2023. This delisting does not affect the wallets of users in which these NFTs remain.
Why is the company phasing out these NFTs from its platform?
Binance started as a basic crypto exchange but later expanded its reach to become a major platform in the market, not just for NFTs. The exchange gained this dominance mainly due to its commitment to providing services for all areas of cryptocurrencies. As a result, it provides a large number of services such as spot cryptocurrency trading, derivatives, NFT trading, staking, launchpad, and many more.
Unfortunately, the exchange has recently faced intense scrutiny from the authorities, leading to stricter rules and security on its platform.
Source: nftplazas.com
analyst opinion
Jakub Odvářka
Binance, one of the largest crypto exchanges, will be delisting NFTs with low trading volume in connection with a change to its KYC rules, following a statement it recently released through its official channels. On February 2, the platform will delist NFTs listed before October 2, 2022. However, not all NFTs will be delisted, only those with a daily trading volume of less than $1,000 between November 1, 2022, and January 31, 2023.
Previously, the platform required creators to complete KYC (Know Your Customer) verification and have at least two trackers before they could list their product on the exchange. However, increased scrutiny from authorities has forced the platform to tighten its KYC rules. In addition, starting January 21, the daily limit for minting new NFTs is limited to just five digital collectibles.
Binance promises to regularly review NFT lists and weed out those that "do not meet its standards." Any platform users can report collections “that may breach its minting rules and terms of service.” Binance will then verify them and take appropriate action if the terms are violated.
As mentioned, the delisting of all NFTs that do not meet the new terms will start on February 2, 2023. This delisting does not affect the wallets of users in which these NFTs remain.
Why is the company phasing out these NFTs from its platform?
Binance started as a basic crypto exchange but later expanded its reach to become a major platform in the market, not just for NFTs. The exchange gained this dominance mainly due to its commitment to providing services for all areas of cryptocurrencies. As a result, it provides a large number of services such as spot cryptocurrency trading, derivatives, NFT trading, staking, launchpad, and many more.
Unfortunately, the exchange has recently faced intense scrutiny from the authorities, leading to stricter rules and security on its platform.
Source: nftplazas.com
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