Binance takes strict security measures to combat account abuse and plans to block violators

Binance has increased its security pressure to Prevent account misuseand introduces new measures to improve the security and integrity of its platform. According to a recent announcement, users must adhere to these new measures to meet Binance’s operating standards or face suspension.

The introduction of these proactive measures reflects Binance’s commitment to promoting user safety and maintaining best-in-class security practices. These measures are also being taken in the midst of the increasing security threats and fraud in the crypto industry.

Binance takes action against account abuse and focuses on key security measures

In a recent X-post revealed Cases where users have exploited certain account types to gain unfair advantages, including cheaper fee rates and higher API limits.

Dear Community,

Thank you for your concerns about the targeted and exploitative use of “airdrop hunters” #Binance Megadrops.

Please be assured that we have implemented certain risk controls to prevent the participation of such accounts. These measures will continue to be strengthened in the future…

— Binance Web3 (@Web3WithBinance) 22 June 2024

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

While these accounts serve various legitimate business purposes, some users have found loopholes they can exploit. Binance states that some players abuse these features to circumvent controls and even sell privileged account statuses.

For this reason, Binance has improved its monitoring system to detect potential cases of abuse for all account types. The crypto exchange says it will thoroughly investigate all suspected incidents and take appropriate action.

Penalties include blocking or terminating the account for Users who violate Binance’s KYC/KYB policies And Terms of Use.

In addition, Binance introduced a Rewards program for users who report confirmed cases of account abuse. A special email address has also been set up ((email protected)) where users can submit their reports.

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

How will UAE accounts comply with the new regulations?

In the meantime, Binance released an important update after announcing a Virtual Asset 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 migrate their assets seamlessly.

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

Meanwhile, the Binance FZE exchange will offer services in lending and borrowing, brokerage trading, investing, and virtual asset management.

The proposed transition process will not impact users’ account functionality, so users can continue to use their old accounts until the deadline. In addition, users’ login credentials will remain unchanged after the transition to ensure a smooth experience.

This process is part of Binance’s approach, Compliance with UAE regulationsCompliance with the Virtual Assets Regulatory Authority (VARA) framework will strengthen Binance’s presence in the region.

Binance launched an advertising campaign from June to October this year. Based on the campaign rules, all Residents of the UAE who update their KYC before October 30th will be eligible for a grand prize of 1 BTC, but terms and conditions apply.

Following regulatory disputes in some regions, Binance remains committed to updating its operations in line with local regulations to ensure smooth business operations.