Binance, the largest cryptocurrency exchange globally, has implemented fresh security protocols to curb account misuse and fortify the platform’s integrity.
The decision comes in response to identified instances of account misuse, granting unfair advantages to specific users. These new measures aim to foster a robust and sustainable market environment that upholds the interests of all participants.
Stricter measures are being enforced, including potential account suspensions or terminations, to deter misuse. Binance emphasizes that such activities tarnish the platform’s reputation and detrimentally affect the majority of users who abide by the rules.
The exchange provides various account types, including sub-accounts, managed sub-accounts, and fund manager accounts, which serve essential purposes. However, these features can be exploited by malicious actors to evade controls and gain preferential fee rates and higher API limits. Binance views unauthorized access to other users’ accounts as a serious violation of its Terms of Use, Know Your Customer (KYC), and Know Your Business (KYB) policies.
To combat misuse, Binance has ramped up monitoring of all account activities. Users are encouraged to promptly report any suspected incidents, with rewards offered for verified cases.
In related news, Bybit has surpassed Coinbase in market share following a decline in Binance’s dominance.
The reward amount for reporting misuse will be determined case by case. Users can report incidents to [email protected].
Binance has been proactive in bolstering its security measures amidst various attempts to combat security breaches. ZackXBT, a blockchain investigator, commended Binance on June 22 for its support to the broader community during security incidents. Despite media criticism, Binance’s security team actively aids victims and provides incident responses, demonstrating a commitment to community support.
CEO Richard Teng highlighted collaboration with authorities to investigate a malicious attack on Turkish crypto exchange BtcTurk, resulting in the successful freezing of over $5 million in stolen funds.
Separately, Binance is currently facing money laundering allegations in Nigeria, where authorities accuse the company of illegally transferring $26 billion out of the country.