Binance, the world’s largest cryptocurrency exchange, has introduced new security measures to prevent the misuse of account features and enhance the platform’s integrity.
The decision follows the discovery of account misuse, which has given certain users unfair advantages. The new measures aim to create a healthy and sustainable market environment that prioritizes the interests of all users.
Stricter actions needed
Binance cautioned that stricter actions will be taken against account misuse, including suspension or termination of accounts if necessary. The exchange emphasized that such misuse harms the platform’s reputation and negatively impacts the experience of most users who follow the rules.
The platform offers various account types, including sub-accounts, managed sub-accounts and fund manager accounts, which are essential for genuine use cases.
However, bad actors can misuse these features to circumvent controls and access better fee rates and higher application programming interface (API) limits. Binance considers any unauthorized access to other users’ accounts a severe breach of its Terms of Use, Know Your Customer (KYC) and Know Your Business (KYB) policy.
To address account misuse, Binance has enhanced monitoring of all account usage and related activities. The platform encourages users to report any suspected incidents of misuse and offers a reward for verified cases.
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The reward amount will be determined on a case-by-case basis. Users can report misuse incidents to misuse-reporting@binance.com.
Efforts towards security
Binance’s efforts to enhance its security measures are among several attempts it has made to help fight security breaches.
ZackXBT, a blockchain investigator, praised Binance on June 22 for helping the broader community during security incidents. He noted that while Binance often faces criticism from the media, its security team actively works to support victims and provide incident response, showcasing a dedication to community support that goes beyond mere words.
According to Binance CEO Richard Teng, the exchange collaborated with authorities to investigate a malicious attack on Turkish crypto exchange BtcTurk, which resulted in the successful freezing of over $5 million in stolen funds.
Binance currently faces money laundering charges in Nigeria after authorities accused the company of illegally moving $26 billion out of the country.
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Sourced from cointelegraph.com.
Written by Amaka Nwaokocha on 2024-06-27 09:46:26.
