Binance has increased its security measures to stop account misuse and improve platform safety, requiring users to follow these new rules or risk having their accounts suspended.
This shows Binance’s commitment to keeping users safe and secure, especially with the growing number of scams in the cryptocurrency world. These actions aim to prevent and reduce potential security problems and account abuses.
The company has identified instances where users have exploited specific account types for unfair advantages, such as lower fees and higher API limits. Binance acknowledged community concerns regarding “airdrop hunters” who manipulate the system and have implemented risk controls to prevent such exploitation.
The exchange offers various account types, including fund manager accounts and sub-accounts, which, while useful for legitimate purposes, have been abused by some users to bypass controls and sell privileged statuses.
To combat these issues, Binance has upgraded its monitoring framework to detect and investigate misuse across all account types. The exchange will take punitive actions against users violating its KYC/KYB policies and Terms of Use, including account suspension or termination.
Additionally, Binance introduced a reward program for users reporting confirmed cases of account misuse and established a dedicated email address for these reports, incentivizing the community to help maintain platform integrity.
In another significant update, Binance announced a transition for UAE residents’ accounts from Binance Global to Binance FZE after securing a Virtual Asset Service Provider (VASP) license in Dubai.
This transition requires users to complete KYC verification by December 15, 2024, to comply with local regulations. The Binance FZE exchange will provide services like lending, borrowing, broker-dealing, investment, and virtual asset management, ensuring a smooth and seamless transition without disrupting user account functions.
As part of its compliance with UAE regulations, Binance launched a promotional campaign offering a grand prize of 1 BTC for UAE residents who update their KYC before October 30.
This campaign aligns with Binance’s broader strategy to adapt its operations to regional regulatory requirements, reinforcing its commitment to maintaining secure and compliant business practices globally. Despite regulatory challenges in some areas, Binance continues to update its operations to ensure compliance and smooth business operations.
