Binance Australia is working to make its new users’ onboarding process stringent as it aims to protect its users from prevalent crypto crime cases. The new set of rules and measures by Binance Australia was noted in the June quarter’s Economic, Social, and Governance (ESG) report released by the company on Monday, August 29, 2022.
The report also mentioned that the company has:
“Delivered a well-considered recommendation to Treasury on licensing and custody requirements for crypto-asset exchanges as part of our commitment in collaborating with policymakers and regulators to contribute to developing a regulatory framework with consumer protection and market integrity at its heart.”
Binance Australia CEO Leigh Travers stated that the company was trying to minimize the financial crime on its crypto exchange platform. Along similar lines, Zachary Lu who is a part of the Financial Crime, Risk and Compliance unit of Binance, went on to say that:
“From the whole financial management perspective, we are really looking at it from end to end and also from a whole life circle’s perspective. We are looking at three main areas: onboarding, ongoing, and the end of the life cycle.”
Both of these officials also mentioned that the move was taken to have a note of investment crypto scams as they were one of the prominent financial crimes. In addition, these scammers have been known to promise unreal returns to customers that needed serious attention. This type of crypto scam has earlier wiped off millions of funds from amateur investors in the domain. Lu commented on this saying:
“There are 500 different scams, but investment scams are always on the top of it. So this is not exclusive to crypto scams, to be honest, but investment scams overall ranked number one for a long, long time. So in terms of the data there, it’s only recently been implemented. So we don’t have sort of the analysis of how that’s how much that is going to stop. But, this user group was multiple times more likely to fall victim to these types of scams.”
Therefore, it will be intriguing to see how the new Binance rules can aid in reducing crypto crime cases on the exchange platform. We can expect more such crypto regulations from the platform itself and other global regulators or exchanges as the field is getting prone to further risks recently.