Binance tightens rules to protect business and users

Binance, one of the major crypto exchanges, is taking steps to address issues that could harm its business and increase risk for users. The exchange has strengthened the Know Your Customer (KYC) system for its platform. KYC consists of a list of questions to prove the identity of the user.

Cryptocurrency transactions are difficult to track and can be used for illegal activities such as money laundering. Because of this many crypto firms have tightened their KYC requirements. CryptoPotato has reported in a report that Binance has tied-up with service providers engaged in KYC and anti-money laundering to keep its business secure. These service providers include CipherTrace and Onfido. To complete KYC on the exchange’s platform, users will have to provide their details as well as pass a background check for risk assessment. The exchange has also started monitoring to ensure that the KYC details of the users are updated.

Along with the increasing trading volumes in the crypto segment over the past few years, scams have also increased. A large number of crypto holders are being targeted by scammers. Cases of scamming low-income crypto investors with the allure of romance are on the rise in the US. Most of the victims in such cases are in the age group of 20-40 years.

In this regard, a report by BanklessTimes states that crypto investors in the US have lost about $ 185 million in such cases from the beginning of last year to March this year. In addition, these investors have lost more than $1 billion in other fraud cases. BanklessTimes CEO Jonathan Merry said, “Investors are at a disadvantage when it comes to romance. Their quest for romance makes them a target for fraudsters. This attraction is such that it makes a lot of people fall prey to it.” and they suffer great loss till they come to know the reality.” There have also been cases of fraud involving cryptocurrencies in some other countries.

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