Recently, on June 27, Binance made an announcement regarding the implementation of stricter measures to combat account misuse. The company revealed that certain account features on the platform were being exploited by users to gain unfair advantages in terms of fee rates and API limits. As a response, Binance stated that it might suspend or terminate accounts found to be involved in misuse.
Binance offers various types of accounts, such as sub-accounts, managed sub-accounts, and fund manager accounts, which have features that could potentially be misused by bad actors seeking advantages over other users. Unauthorized access to other users’ accounts is strictly prohibited by the firm, and they have promised to take strict actions against violators, including suspending or terminating their accounts.
To prevent further misuse of account features, Binance has decided to increase its monitoring of all user accounts. They have also established a reporting channel for users to report incidents of account misuse. Moreover, the company has introduced a reward system for verified cases of reported misuse. This step aims to encourage users to report any suspicious activities on the platform promptly.
The Binance API has three different types of limits: hard, machine learning, and web application firewall limits. Unfortunately, these limits have been abused by users seeking to exploit the system. In response to this misuse, Binance has decided to crack down on such activities and enhance its monitoring of all account usage and related activities.
In line with regulatory compliance, Binance announced that it recently received a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA) for its local exchange in Dubai, Binance FZE. The firm further added that there will be an account transition for all UAE residents from the Binance Global exchange to the newly-regulated Binance FZE exchange.
At the time of writing, Binance’s native token, BNB, was trading flat at $573. Despite the market correction, BNB has fared relatively well compared to other altcoins, hitting an all-time high of $717 on June 6. However, the token has witnessed a 20% decline from its peak over the past three weeks as the market correction deepens.
Binance’s crackdown on account misuse reflects its commitment to maintaining a fair and transparent trading environment for all users. By implementing stricter measures, enhancing monitoring, and encouraging users to report any misuse, Binance aims to prevent unfair advantages and promote regulatory compliance within its platform.
Leave a Reply