• Binance users will need to pass the corresponding quizzes every 90 days on the Binance Spot and Margin platforms to gain trading access to the tokens marked with Seed Tag or Monitoring Tag.
• Binance intends to conduct a period project review in a bid to ensure customer protection in line with its many regulatory approvals.

Binance cryptocurrency exchange, a leading digital asset firm in daily traded volume and more than 140 million global registered users has announced new features to help its customers differentiate between veteran crypto assets and newly listed coins with high chances of extreme volatility. 

Closer Look at Binance Seed Tag and Monitoring Tag 

According to the exchange through a formal announcement, all crypto tokens listed in the innovation zone will now be offered through a new feature dubbed Seed Tag. Additionally, Binance announced that the crypto tokens that exhibit higher volatility and notable risks compared to other digital assets will be listed on a new feature dubbed Monitoring Tag.

Some of the tokens to be listed on the Monitoring Tag include listed tokens: Akropolis (AKRO), AirDAO (AMB), Ark (ARK), Bitshares (BTS), Cream Finance (CREAM), DREP (DREP), aelf (ELF), FTX Token (FTT), Gifto (GFT), and JasmyCoin (JASMY), among others.

The crypto behemoth further noted that users will be vetted before accessing the Seed Tag and Monitoring Tag feature to ensure they understand the risks involved. Notably, Binance expects users to pass Seed Tag and Monitoring Tag corresponding quizzes every 90 days on the Binance Spot or the Binance Margin platforms, in addition to accepting the Terms of Use.

The cryptocurrency exchange further highlighted that it will be conducting periodic project reviews and deciding if the relevant Tags should be added to or removed from the tokens as per its latest findings. Some of the factors to be considered by Binance in regard to the tag on a project include its team’s commitment, development quality, trading volume and liquidity, smart contract ability, and the level of public communication among others.

Bigger Picture 

Binance crypto exchange has faced intense regulatory scrutiny since the implosion of FTX exchange and its sister firm Alameda Research. Already, the exchange is fighting legal charges in the United States after the SEC accused it of listing unregistered securities.

Additionally, Binance has faced licensing upheavals in the European market despite the recent MiCA regulatory framework. In its defense, Binance has insisted that digital assets running on the blockchains are not securities as they solve different use cases. Moreover, the recent SEC vs Ripple summary judgment ruling largely deemed XRP non-security.

Nonetheless, the exchange intends to have clear features on its platform to ensure seamless mainstream cryptocurrency adoption. Furthermore, the exchange has a responsibility of guiding investors away from scam projects and at the same time bring together crypto projects with potential investors.