In February, the exchange will delist NFTs with low trading volume that were listed before the new KYC rules took effect.
Binance announced on Jan. 19 that it had tightened the rules for listing nonfungible tokens. All NFTs listed before Oct. 2, 2022 and with a daily trading volume of less than $1,000 between Nov. 1, 2022 and Jan. 31, 2023 will be delisted by Binance on Feb. 2, 2023. NFT artists will also be limited to minting a maximum of five digital collectibles per day after Jan. 21, 2023.
Before listing on Binance NFT, sellers must complete Know Your Customer (KYC) verification and have at least two followers. In addition to the revised rules, Binance said it would forthwith “periodically review” NFT listings that do not “meet its standards” and recommend them for delisting.
“Users can report NFTs or collections that violate Binance’s NFT minting rules and terms of service. Binance’s due diligence team will actively review reports of fraud or rule violations and take appropriate action.”
By Feb. 02, 2023, all digital collectibles that do not meet these two requirements will be delisted automatically. Delisted assets will remain in users’ wallets until then. Regulators have been closely watching Binance since last year for allegations of lax KYC procedures and its involvement in illicit fund transfers, which Binance has denied.
According to the United States Financial Crimes Enforcement Network, Binance was one of the “top three receiving counterparties” to the Bitzlato money laundering allegations that surfaced on Jan. 18. Following new sanctions from the European Union, Binance was among exchanges that continued to serve non-sanctioned Russians.