Binance, one of the largest cryptocurrency exchanges in the world, has announced significant modifications to its token labeling, affecting several digital assets listed on its platform.
In a recent statement, Binance revealed that it will extend the “Monitoring Tag” label to a number of specific tokens, while also removing the “Seed Tag” label for others, starting January 4, 2024.
Among the assets that will now carry the “Monitoring Tag” label are a variety of prominent tokens in the market, such as Aragon (ANT), Firo (FIRO), Keep3rV1 (KP3R), Mdex (MDX), MobileCoin (MOB), Reef (REEF), Vai (VAI), Monero (XMR), Zcash (ZEC) and Horizen (ZEN).
These tokens, according to the announcement, show significantly higher volatility and risks compared to other assets listed on the platform.
On the other hand, Binance has also decided to remove the “Seed Tag” label from tokens such as GMX (GMX) and SushiSwap (SUSHI) , describing them as innovative projects that could present greater volatility and risks in the market.
To safeguard users, Binance will implement mandatory passing of questionnaires related to these flagged tokens every 90 days on its Binance Spot and Binance Margin platforms, along with acceptance of the Terms of Use.
These questionnaires aim to ensure that users are fully aware of the associated risks before trading these crypto assets.
Additionally, Binance has established a series of criteria for project review, including aspects such as team commitment, development activity, trading volume, network security, and public communication.
These criteria are crucial in determining whether tokens maintain their label or risk being removed from Binance
Importantly, other services related to these tokens will not be affected by these changes.
The announcement comes against a backdrop of increasing regulatory scrutiny in the cryptocurrency space globally.
Pressure from regulators, especially regarding privacy and regulatory compliance, has led several major exchanges to review and adjust their digital asset listing policies.
Binance is committed to maintaining continued transparency and fostering sustainable growth within the cryptocurrency ecosystem, while addressing concerns about volatility and risks associated with certain digital assets.
These changes reflect Binance’s efforts to regulate and safeguard crypto trading, while balancing innovation with security on its market-leading platform.
