Binance takes action against account abuse and threatens violators with blocking

Binance has announced a series of new measures designed to improve the security and integrity of its platform. These initiatives are designed to prevent abuse and ensure compliance with the platform’s standards. By addressing potential vulnerabilities, Binance reaffirms its commitment to providing its users with a safe and reliable trading environment. These changes reflect the platform’s proactive approach to protecting user accounts and maintaining robust security protocols.

Combating account abuse and introducing important measures

Cryptocurrency exchange Binance has announced a new initiative to combat abuse of account features on its platform. The company reports cases where users have exploited certain account types to gain unfair advantages, such as better fee rates and higher API limits.

Binance offers several account types, including sub-accounts, managed sub-accounts, and fund manager accounts, which are designed for legitimate business purposes. However, the exchange has found that some malicious actors abuse these features to bypass controls and access or sell privileged account statuses.

In response, Binance has enhanced its monitoring systems to detect potential abuse across all account types. The exchange warns that it will investigate suspected incidents and take action, including blocking or terminating accounts, if the platform’s terms of use and KYC/KYB policies are violated.

To further combat this problem, Binance is introducing a reward program for users who report verified cases of account abuse. The company has set up a special email address ([email protected]) where users can send their findings. The amount of the reward will be determined on a case-by-case basis.

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Converting UAE accounts to comply with new regulations

Binance recently released an important update in the wake of obtaining a VASP (Virtual Asset Service Provider) license from Dubai’s VARA (Virtual Assets Regulatory Authority). On June 26, the crypto exchange published an announcement regarding account switching procedures for UAE residents who wish to switch from the global Binance exchange to the Binance FZE exchange.

The account transition will ensure that user accounts migrate from the global Binance exchange to the FZE exchange. To be eligible, users must complete and update the KYC verification requested via email. The deadline for this submission is December 15, 2024.

This transition is part of Binance’s broader strategy to comply with local regulations and improve its service offering in the UAE. By aligning with the VARA regulatory framework, Binance aims to strengthen its presence in the region and provide its users with a fully compliant trading environment.

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