The world’s largest crypto asset exchange, Binance, is taking stricter measures to tackle account abuse and misuse.
On June 27, Binance announced that it is implementing stricter measures to address account misuse, including enhanced monitoring of all account activities.
The company stated that it has recently detected instances where certain account features on the platform are being “misused or exploited to gain unfair advantages, such as a better fee rate and higher API limits over other users.”
Binance said that it may suspend or terminate accounts found to be involved in misuse.
Account Termination for Violators
The exchange offers various account types that have features with the potential to be misused by bad actors seeking better fee rates. These include sub-accounts, managed sub-accounts, and fund manager accounts.
The firm has frowned upon providing unauthorized access to other users’ accounts and has vowed to take measures such as suspending or terminating violating some. Binance will also increase its monitoring of all user accounts.
“To ensure our account features are not being misused, we have further enhanced the monitoring of all account usage and related activities.”
Binance also established a reporting channel for users to report account misuse incidents with a reward system for verified cases of reported misuse.
The Binance API has three different types of limits: hard, machine learning, and web application firewall limits, which appear to have been abused by those seeking to exploit the system.
The exchange is the world’s largest with more than $10 billion in daily volume, according to CoinGecko.
Binance UAE License Approved
In related news, Binance announced that it received a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA) for its local exchange in Dubai, Binance FZE, on June 26.
The firm added that there will be an account transition for all UAE residents from the Binance Global exchange to the newly-regulated Binance FZE exchange.
The exchange’s native token, BNB, was trading flat on the day at $573 at the time of writing. BNB has fared much better than its altcoin brethren in recent months, hitting an all-time high of $717 on June 6, while other altcoins have tanked hard.
However, the asset has declined 20% from that peak over the past three weeks as the market correction deepens.