Binance to Implement Stricter Measures to Address Account Abuse
On June 27th, Binance announced that it will be implementing stricter measures to address the issue of account abuse, including enhancing monitoring of all account activities.
The company stated that it had recently discovered that certain account functionalities on the platform were “being abused or exploited to gain unfair advantages, such as higher fee rates and API restrictions compared to other users.”
Binance stated that it may suspend or terminate accounts found to be involved in abuse.
Termination of Violators’ Accounts
The exchange offers various account types that have functionalities which bad actors could abuse to seek higher fee rates. These include sub-accounts, managed sub-accounts, and fund manager accounts.
The company expressed dissatisfaction with unauthorized access to other users’ accounts and pledged to take actions such as suspending or terminating accounts of certain users for violations. Binance will also enhance monitoring of all user accounts.
“To ensure that our account functionalities are not abused, we have further strengthened monitoring of all account usage and related activities.”
Binance also established a reporting channel for users to report account abuse incidents and implemented a reward system for verified reports of abuse cases.
Binance API has three different types of restrictions: hard limits, machine learning limits, and network application firewall limits, which appear to have been abused by those attempting to exploit the system.
According to CoinGecko’s data, the exchange is the world’s largest, with a daily trading volume exceeding $10 billion.
Binance UAE License Approved
In related news, Binance announced that it obtained a Virtual Asset Service Provider (VASP) license for its local exchange, Binance FZE, from the Dubai Virtual Assets Regulatory Authority (VARA) on June 26th.
The company added that all accounts of UAE residents will transition from Binance’s global exchange to the newly regulated Binance FZE exchange.
At the time of writing, the exchange’s native token BNB was trading flat at $573. In the past few months, BNB has outperformed its altcoin counterparts, reaching a record high of $717 on June 6th while other altcoins experienced significant declines.
However, as the market correction deepens, the asset has fallen 20% from its peak in the past three weeks.