Binance tightens monitoring of its services, offers rewards for reporting abuse

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Binance has decided to add more layers of security on managing accounts on its platform. The exchange’s decision comes after internal analyses revealed that some of its features and services were being exploited to gain unfair advantages, such as better fee rates and higher API limits. Binance plans to take a number of steps to make its platform safer for users to engage with cryptocurrencies. The exchange has recently had run-ins with law enforcement authorities in more than one country, causing it to reevaluate its user-friendliness and look to improve its services.

Binance explains its exploit

Bad actors are stepping up to exploit cryptocurrencies, primarily because these digital assets can process instant transactions locally and across borders, providing anonymity to the parties involved. Governments around the world are concerned about the misuse of crypto tokens to facilitate illegal transactions involving terrorism financing and money laundering.

Detailing the findings of its own analysis, a blog from Binance said, “Our platform offers a variety of account types, including sub-accounts, managed sub-accounts, and fund manager accounts, all of which play a vital role in various real-world use cases. However, these features can also be abused by bad actors who seek to circumvent our controls to gain or sell access to better fee rates and higher API limits.”

To ensure that its account features are not being abused, Binance claims to have increased monitoring of all account usage and related activities from a technical perspective.

The post further states, “We will investigate all potential or suspected incidents of abuse and, if necessary, take appropriate action to address the abuse, which may include, but is not limited to, suspending or terminating associated accounts.”

Binance offers rewards to encourage users to report abuse

In December 2023, Binance claimed to have grown to over 170 million users on its global network.

To catch financial criminals abusing its platform, Binance has asked its users to be vigilant. The exchange is offering rewards for reporting potentially suspicious account holders.

The exchange said, “We will provide a bounty for any verified case of account abuse. The amount of the bounty will be determined on a case-by-case basis. Your support can make a significant impact and help improve our platform. These efforts are vital to further enhance and secure the integrity of our platform.”

Recently, Binance was fined $2.25 million (roughly Rs. 18.8 crores) in India for allegedly not complying with the Prevention of Money Laundering Act, 2002 (PMLA). The crypto exchange has previously also faced clashes with US and Nigerian authorities over alleged non-compliance with their respective regulations overseeing the crypto sector.


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