Binance Enhances Token Transparency with Monitoring Tags on 10 Cryptocurrencies

  • Binance expands its Monitoring Tag to include ten cryptocurrencies, enhancing oversight.
  • Users warned of potential delisting for tagged tokens, required to pass quizzes for continued access.

In a strategic move to enhance transparency and provide users with a more comprehensive understanding of listed tokens, Binance, one of the world’s leading cryptocurrency exchanges, is set to introduce significant updates to its token classification system. As part of this initiative, Binance will expand the monitoring tag to include more tokens while simultaneously removing the Seed tag for selected tokens.

Binance recently announced plans to expand the Monitoring Tag coverage to include ten additional assets beginning in January. This plugin now includes Monero (XMR) and Zcash (ZEC). According to a press release, the newly added tokens to the Monitoring Tag list include Keep3rV1 (KP3R), Reef (REEF), Aragon (ANT), Firo (FIRO), MobileCoin (MOB), Mdex (MDX), Vai (VAI), and Horizen (ZEN). Concurrently, Binance will remove the Seed Tag from GMX (GMX) and SushiSwap (SUSHI).

Tokens with the Monitoring Tag exhibit notably higher volatility and risks compared to other listed tokens. These tokens are closely monitored, with regular reviews conducted. Keep in mind that tokens with the Monitoring Tag are at risk of no longer meeting our listing criteria and being delisted from the platform.

This move coincides with Binance’s intensified efforts to improve risk management following its admission to a slew of offenses in late 2023, including money laundering and failing to comply with US Securities and Exchange Commission (SEC) know-your-customer (KYC) laws.

Notably, some of these tokens, such as Monero, Horizon, and Zcash, are privacy tokens and projects that have come under fire from exchange platforms for their concentration on anonymity, with OKX recently discontinuing support and delisting many trade pairs.

Binance highlighted that tokens with the ‘Monitoring tag’ are subject to strict scrutiny due to their high volatility and are subject to regular checks to ensure compliance with listing rules. The platform warned users that failing to achieve these standards could result in tokens being delisted.

To gain trading access to tokens marked with the Monitoring Tag or Seed Tag, users will need to pass the corresponding quizzes every 90 days on the Binance Spot and/or Binance Margin platforms and accept the Terms of Use. The quizzes are set up to ensure users are aware of the risks before trading tokens with the Monitoring Tag or Seed Tag.

All hope is not lost. Binance will conduct project assessments on a regular basis to determine whether the Monitoring Tag and Seed Tag should be added to or removed from tokens based on its current results. During the review, criteria such as the commitment of the team to the project, level and quality of development activity, trading volume and liquidity, stability, and safety of the network from attacks, network/smart contract stability, level of public communication, responsiveness to periodic due diligence requests, evidence of unethical/fraudulent conduct or negligence, and contribution to a healthy and sustainable crypto ecosystem are taken into account. As a result, Binance assures customers that other services relating to these tokens will not be impacted. The changes to the selected tokens’ Monitoring Tags and Seed Tags will be implemented immediately after the press release.

Binance’s Ongoing Commitment to Security

In its pursuit of heightened transparency and risk management, Binance’s decision to introduce monitoring tags on ten cryptocurrencies, including privacy coins like Monero and Zcash, reflects its commitment to safeguarding users. As the exchange tightens scrutiny on tokens exhibiting higher volatility, this move follows Binance’s recent efforts to enhance risk management protocols. Users are urged to stay informed about the evolving status of these tokens, as periodic assessments will influence their listing fate. With continuous vigilance and adherence to compliance standards, Binance aims to maintain a secure trading environment without disrupting other services related to these assets.

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Mehar Nayar

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