On June 27th, Binance announced that it will be implementing stricter measures to address the issue of account abuse, including enhanced monitoring of all account activities.
The company stated that it has recently discovered that certain account functions on the platform have been “abused or exploited to gain unfair advantages, such as higher fee rates and API restrictions compared to other users.”
Binance has expressed that it may suspend or terminate accounts found to be involved in abuse.
The exchange offers various types of accounts, some of which have functionalities that bad actors may exploit to seek higher fee rates, including sub-accounts, margin accounts, and fund manager accounts.
The company expressed discontent with unauthorized access to other users’ accounts and pledged to take action, such as suspending or terminating accounts engaged in violations. Binance will also strengthen monitoring of all user accounts.
“In order to ensure that our account functionalities are not abused, we have further enhanced the monitoring of all account usage and related activities.”
Binance has also established a reporting channel for users to report account abuse incidents, and has implemented a reward system for verified reports of abuse cases.
The Binance API has three different types of restrictions: hard restrictions, machine learning restrictions, and network application firewall restrictions, which appear to be abused by those attempting to exploit the system.
According to CoinGecko data, the exchange is the world’s largest, with a daily trading volume exceeding $10 billion.
Binance’s UAE license has been 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 Asset Regulatory Authority (VARA) on June 26th.
The company added that all accounts for 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 at $573. In recent months, BNB has outperformed its altcoin siblings, hitting a historical high of $717 on June 6th, while other altcoins saw significant declines.
However, as the market correction deepens, the asset has dropped 20% from its peak over the past three weeks.
