Binance has tightened its grip on security to prevent account abuse, introducing new measures to enhance its platforms safety and integrity. According to its recent announcement, users must conform to these new measures to comply with Binances operational standards or face suspension.

Adopting such proactive measures reflects Binances commitment to promoting user safety and maintaining A-grade security procedures. Also, these measures come amid the rising security threats and scams in the crypto industry.

In a recent X post, Binance revealed cases where users exploited some account types to gain unfair advantages, including cheaper fee rates and higher API limits.

Notably, Binance offers users different types of accounts, including fund manager accounts, sub-accounts, and managed sub-accounts.

While these accounts have various legitimate business purposes, some users found loopholes to exploit. Binance states that some bad players abuse these features to bypass controls, even selling privileged account status.

Consequently, Binance has upgraded its monitoring framework to uncover potential misuse cases for all account types. The crypto exchange says it will thoroughly investigate all suspected incidents and take appropriate action.

Some punitive measures include account suspension or termination for users acting against Binances KYC/KYB policies and Terms of Use.

In adition, Binance introduced a reward program for users who report confirmed cases of account misuse. It also created a dedicated email address ([emailprotected]) where users can submit their reports.

Users can send their findings and complaints on accounts with suspicious activities and receive rewards for such verified reports on a case-by-case basis.

Meanwhile, Binance revealed a vital update after securing a Virtual Asser Service Provider (VASP) license in Dubai.

According to the update, Binance will migrate accounts for UAE residents from the Binance Global exchange to the Binance FZE exchange. This transition process will help users in the UAE to migrate their assets seamlessly.

However, to qualify for the transition, users must process their KYC verification through an email prompt on or before December 15, 2024. This transition also conforms to Binances strategy to comply with local regulations in the region.

Meanwhile, the Binance FZE exchange will offer lending and borrowing, broker-dealing, investment, and virtual asset management services.

The proposed transition process will not interfere with users account functions. So, users can still operate with their old accounts until the deadline. Moreover, users login details will remain unchanged after the transition to ensure a seamless process.

This process is part of Binances approach to complying with UAE regulations. Conforming with the Virtual Assets Regulatory Authority (VARA) framework will strengthen Binances presence in the region.

Binance launched a promotional campaign from June until October this year. Based on the campaign rules, all UAE residents who update their KYC before October 30 will be eligible for a grand prize of 1 BTC. However, terms and conditions apply.

Following regulatory loggerheads in some regions, Binance remains committed to updating its operations in compliance with local regulations for smooth business operations.

Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.

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Binance Tackles Account Misuse with Stringent Security Measures, Plans to Suspend Violators - The Tech Report