Binance to delist NFTs with low trading volume

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The world’s top crypto exchange Binance issued a directive to limit NFTs with low trading volumes. The statement released by the exchange indicates its plans to delist NFTs showing low trading volumes together with the ones that came into the platform before KYC norms.

NFTs’ new rules on Binance

According to the statement released on January 19th, the Binance team enlightened its users and the public on new rules to guide NFT and digital asset listings. The new rules come in place under the regulatory procedures of the platform.

The exchange announced that starting Feb 2, the company will remove all the NFTs trading in the platform listed before Oct. 2, 2022. Also, the platform will delist NFTs having a volume of less than $1000 in daily trades between Nov 1, 2022, and Jan 31, 2023.

In addition, the top crypto exchange announced new regulations on digital collections. The NFT creators and digital artists will only create a maximum of five digital assets in 24 hours from January 31.

Know Your Customer (KYC) policy in practice

Verification in Binance follows the KYC process to ensure the security of the collections in the platform. Every seller must complete KYC, followed by a minimum of two followers, to be on the platform. 

The announcement informed the public that the platform would continue reviewing NFT listings to ascertain their standards. Collections that do not meet the set standards set by the platform will be removed.

The regulations allow users to report any digital asset or NFT collection that violates the rules set by Binance. Further, the platform stated that its Due Diligence team would review the reports and take the most appropriate action.

According to Binance, the delisting is scheduled for February 2. Once a collection is delisted from the platform, the user will still see it in the wallet.

The force behind strict scrutiny

New regulations on NFTs come after Binance hesitated on KYC policy which attracted severe allegations on the platform. The exchange is under attack due to accusations of illegally processing funds, although it has vividly denied the claims.

The continued scrutiny by state agencies has also necessitated the platform to create new regulations. Binance is one of the big exchanges that handle a wide range of activities in the crypto industry.

Cryptowdiaries continue to look at the developments and will bring more information to crypto enthusiasts.

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