- Binance has updated the rules on its NFT platform
- Existing collections with less than $1,000 in trading volume will be delisted
- NFT creators wishing to list their artworks on Binance NFT must complete KYC verification and have a following
Binance NFT has introduced new rules requiring NFT artists to complete know-your-customer (KYC) verification and build a following before being allowed to list their collections. Other rules require an NFT collection to maintain a 24-hour average trading volume of more than $1,000 to avoid being delisted. Collections not meeting the set criteria will be thrown out of the marketplace in February.
Five NFT Mints per Day
According to the new rules, NFT creators need to have a minimum following of two entities coupled with a KYC-verified account before accessing the listing features on the marketplace. The marketplace added that it’ll continually assess listed projects for adherence to the new rules and determine whether they are due for delisting. Binance NFT will also allow NFT investors to report a project that operates against the rules.
Apart from delisting collections with low trading volume, the new rules cap the maximum number of NFTs mintable in a day to five per NFT creator. Binance NFT will also “take down and cease trading for NFT collections […] minted and listed on the Binance NFT marketplace before 2022-10-01 23:59 (UTC).”
Delisted, Not Unavailable
However, delisted collectibles will still be available in a collector’s profile with collectors given the option to withdraw their artworks. According to Binance, the new rules are meant to “protect” the marketplace’s users. The move comes at a time when Binance is fighting to distance itself from Bitzlato, a crypto exchange that was charged by the United States Department of Justice (DOJ) with crypto-based money laundering.
It also comes when other NFT marketplaces such as Rarible are implementing new features meant to bring the NFT community together, an indication that NFT marketplaces are working to bring sanity in a market plagued by scams.