By
Svetlana Soroka
June 29th, 2024
Those found to violate the Binance’s Terms of Use and KYC/KYB policies are likely to face account suspension or termination.
Binance, a leading cryptocurrency exchange, has introduced new measures to boost security and integrity on its platform. The exchange takes this step to mitigate account misuse and ensure compliance with Binance standards and established regulatory framework. Markedly, the decision reflects the trading platform’s commitment and proactive approach towards ensuring users’ safety.
Binance Offers User Rewards to Spot Account Misuse
The new development will help the exchange to spot potential vulnerabilities on its platform and address them before they transition into major loopholes.
Ordinarily, Binance delivers sub-accounts, managed sub-accounts, fund manager accounts, and other account types. These are all geared towards catering to legal businesses. In the long run, it was discovered that many bad actors were misusing these features for their selfish gains.
Precisely, Binance decided to adopt this approach after discovering instances where users seek to gain unfair advantages by exploiting certain account types. Some of these advantages are better fee rates and higher API limits. In addition to this enhanced monitoring system, Binance says it will investigate suspected incidents and may even take action against such persons.
Those found to violate the Binance’s Terms of Use and KYC/KYB policies are likely to face account suspension or termination.
A reward program has also been introduced for users who report cases of verified account misuse. To this end, the exchange has set up a dedicated email address through which users can submit their findings. There is no fixed reward amount as it would be on a case-by-case basis.
This reward program could spur users to be on the lookout for any suspicious activity.
Binance Promotes Regulatory Compliance
In another Binance news, the crypto exchange recently wrote a letter to its users, informing them of its integration of the industry’s largest stablecoin Tether (USDT) on The Open Network (TON). This means that users can now perform USDT deposit and withdrawal transactions on TON. It is a significant move towards offering users a large suite of options and flexibility in conducting their transactions.
Meanwhile, the exchange is still pursuing its Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA). On Wednesday, Binance announced an account transition procedure for residents in the UAE. This will enable them to shift from the Binance global exchange to the Binance FZE exchange.
This encompasses the migration of users’ accounts from the Binance global exchange to the FZE exchange.
Users are required to complete and update the KYC verification requested via email to be eligible for the transition. They have until December 15, 2024, to complete the process and submit it. This is also part of Binance’s approach to ensure compliance with regulatory frameworks and requirements, this time, in the UAE.
It is also a means for the exchange to expand its product reach and strengthen its presence across several borders.