Binance adopts a user-first approach to enhance security
Users are at the core of the Binance ecosystem and the platform continuously prioritizes user protection through its state-of-the-art security measures and strict data privacy measures. This includes a 360-degree risk management system, as well as real-time monitoring and advanced data privacy tools.
Binane believes that crypto compliance is an essential part of the larger vision of mass adoption. The platform is partnering closely with regulators and third parties around the world to develop regulatory frameworks, guidelines, and standards that prioritize user protection initiatives.
Ensuring platform and user-level security
Some of the major platform security measures undertaken by Binance include:
- Advanced security measures: With wallet and personnel infrastructure features such as multisignature and threshold signature schemes, the platform ensures the safety and integrity of user funds.
- Offline fund storage: The vast majority of user funds and assets are stored safely in offline, cold storage facilities.
- Monitoring activity in real-time: All withdrawal attempts, password and address changes, and 2-factor authentication are analyzed through Binance’s risk management system. In case there is an unusual activity from an account, the withdrawals will be suspended for 24 to 48 hours.
- Data encryption: Binance also protects personal information and user data through encryption in storage. The data that is in transit is also secured using end-to-end encryption, ensuring that only the users have access to their personal information.
In order to ensure user-level security, some of the following steps are taken:
- Timely alerts in the event of suspicious activities: Users get emails, notifications, and security alerts in case of suspicious activities happening in their accounts. Users can also easily restrict access to unwanted third parties.
- Sign-in safely: With strict sign-in protocols, Binance supports stringent sign-in protocols like 2-factor authentication and hardware, app-based, SMS, and email methods.
- Opt-in security features: IP and wallet address whitelisting, API access control, and device management are some of the advanced opt-in security features.
Recovering funds and preventing scams
One of the biggest problems faced by any crypto user is losing their funds or accidentally sending them to the wrong address. Binance has made continuous efforts to help out such users, including recovering over $344,000 from a Wine Swap exit scam.
Binance Angels, the platform’s most active and passionate community builders, has played a pivotal role in fund recovery efforts. The volunteer group helped a user recover 98,000 USDC worth of funds that were accidentally sent to the wrong address.
The platform’s security team also helped recover 99.9% of approximately $345,000 stolen as part of an exit scam, exemplifying its user-first approach in the ecosystem.
The crypto space is growing significantly, and with new projects entering the market every day it can be difficult for people in the space to assess the real value offered by different projects. Additionally, techniques like yield farming and lucrative borrowing and lending protocols that offer high returns can put users at a high risk of losing their funds. Binance encourages users to do their own research before investing in any new projects and also provides them with a database of project reports on many top initiatives in the industry.
Some of the major compliance initiatives taken by the Binance team include:
- Law Enforcement Request System: Binance’s LERS or Law Enforcement Request System is designed for government and law enforcement agencies only. It helps them submit information requests which would then be reviewed by Binance and the required information would be disclosed as legally required on a case-by-case basis.
- Tax Reporting API: Binance also has a Tax Reporting Tool that would let users keep track of their crypto activities easily and make sure that they are fulfilling the reporting requirements laid out by their regulatory bodies.
- Anti-money laundering (AML): AML programs target illegal money-making and illicit moving of funds. While they apply to the larger financial institutions, they are also finding relevance in the crypto space slowly. Many exchanges have made concrete efforts in order to comply with AML laws as the crypto market is coming to light. Binance has been one of the pioneers in the field in terms of adherence to anti-money laundering laws and cooperating with local laws and regulators to create a safer crypto environment.
- Know-Your-Customer (KYC): Know-Your-Customer initiatives go hand-in-hand with AML compliance efforts. Binance makes customer identity verification a mandatory part of the user onboarding process.
- Futures Leverage for new accounts: New users on the platform would not be able to get leverage levels of more than 20x within the first 60 days of account opening.
Restoring funds on the Ronin Bridge
Recently, Binance also led a $150 million USD funding round of the creator of Axie Infinity, Sky Mavis. The platform helped in restoring funds on the Ronin Bridge along with participation from Animoca Brands, Dialectic Paradigm, Accel and a16z. The funds will also be used to reimburse user funds that were affected by the Ronin Validator Hack.
Once the Ronin bridge undergoes a security upgrade and multiple audits, it would reopen for all individuals to withdraw their funds.
While trading is engaging and thrilling, it can also lead to financial and emotional distress in some users. To counter such issues, the platform motivates its users to practice self-discipline and issues an anti-addiction notice reminding traders of impulsive trading behaviors.
Binance also has a cooling-off period function that disables derivatives trading so that users can abstain from compulsive buying after incurring losing streaks. This feature is also available for margin trading wherein activities such as isolated or cross margin trading and borrowing can be suspended for a specific period of time.
Apart from these features the platform also has support articles, auto-deleverage liquidation indicator, user-generated content, and client-knowledge assessments.
For more information on Binance, please check out their official website.
Disclaimer: This is a paid post and should not be treated as news/advice.