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Binance Tackles Account Misuse with Stringent Security Measures, Plans to Suspend Violators

June 28, 2024
in Technology
Binance Tackles Account Misuse with Stringent Security Measures, Plans to Suspend Violators
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Binance has tightened its grip on security to prevent account abuse, introducing new measures to enhance its platform’s safety and integrity. According to its recent announcement, users must conform to these new measures to comply with Binance’s operational standards or face suspension.

Adopting such proactive measures reflects Binance’s commitment to promoting user safety and maintaining A-grade security procedures. Also, these measures come amid the rising security threats and scams in the crypto industry.

Binance Tackles Account Misuse Focusing on Vital Security Measures

In a recent X post, Binance revealed cases where users exploited some account types to gain unfair advantages, including cheaper fee rates and higher API limits.

Dear community,

Thank you for sharing your concerns regarding ‘airdrop hunters’ targeting and exploiting #Binance Megadrop.

Rest assured that we’ve implemented certain risk controls to prevent such accounts from participating. These measures will also be further strengthened in…

— Binance Web3 (@Web3WithBinance) June 22, 2024

Notably, Binance offers users different types of accounts, including fund manager accounts, sub-accounts, and managed sub-accounts.

While these accounts have various legitimate business purposes, some users found loopholes to exploit. Binance states that some bad players abuse these features to bypass controls, even selling privileged account status.

Consequently, Binance has upgraded its monitoring framework to uncover potential misuse cases for all account types. The crypto exchange says it will thoroughly investigate all suspected incidents and take appropriate action.

Some punitive measures include account suspension or termination for users acting against Binance’s KYC/KYB policies and Terms of Use. 

In adition, Binance introduced a reward program for users who report confirmed cases of account misuse. It also created a dedicated email address ([email protected]) where users can submit their reports. 

Users can send their findings and complaints on accounts with suspicious activities and receive rewards for such verified reports on a case-by-case basis.

How Will the UAE Accounts Comply with the New Regulations?

Meanwhile, Binance revealed a vital update after securing a Virtual Asser Service Provider (VASP) license in Dubai. 

According to the update, Binance will migrate accounts for UAE residents from the Binance Global exchange to the Binance FZE exchange. This transition process will help users in the UAE to migrate their assets seamlessly. 

However, to qualify for the transition, users must process their KYC verification through an email prompt on or before December 15, 2024. This transition also conforms to Binance’s strategy to comply with local regulations in the region.

Meanwhile, the Binance FZE exchange will offer lending and borrowing, broker-dealing, investment, and virtual asset management services. 

The proposed transition process will not interfere with users’ account functions. So, users can still operate with their old accounts until the deadline. Moreover, users’ login ‘details will remain unchanged after the transition to ensure a seamless process. 

This process is part of Binance’s approach to complying with UAE regulations. Conforming with the Virtual Assets Regulatory Authority (VARA) framework will strengthen Binance’s presence in the region. 

Binance launched a promotional campaign from June until October this year. Based on the campaign rules, all UAE residents who update their KYC before October 30 will be eligible for a grand prize of 1 BTC. However, terms and conditions apply.

Following regulatory loggerheads in some regions, Binance remains committed to updating its operations in compliance with local regulations for smooth business operations.  

Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.

The Tech Report - Editorial ProcessOur Editorial Process

The Tech Report editorial policy is centered on providing helpful, accurate content that offers real value to our readers. We only work with experienced writers who have specific knowledge in the topics they cover, including latest developments in technology, online privacy, cryptocurrencies, software, and more. Our editorial policy ensures that each topic is researched and curated by our in-house editors. We maintain rigorous journalistic standards, and every article is 100% written by real authors.

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