• Binance, the world’s largest cryptocurrency exchange, launched a joint anti-scam campaign to combat crypto-related scams.
• Following a major hack in October of last year, customers have lost confidence in centralized exchanges as trading volume has decreased and liquidity on the exchange has dropped by 21%.
• Binance is also facing regulatory heat from the U.S. Securities and Exchange Commission (SEC).
Binance Launches Joint Anti-Scam Campaign
Binance, the world’s largest cryptocurrency exchange, announced that it will partner with law enforcement agencies worldwide to combat crypto-related scams. The exchange said that it launched the Joint Anti-Scam Campaign which will include sending alerts, crime prevention messages, and other helpful tips whenever users initiate a withdrawal on Binance. The project started in Hong Kong and showed good results.
High Profile Hacks Have Eroded Customers‘ Confidence
High profile hacks have eroded customers‘ confidence in centralized exchanges (CEXs). Analysis from Dune Analytics revealed that trading volume on CEXs dipped considerably since November while decentralized exchanges (DEXs) saw a substantial uptick. Additionally, as per Binance’s proof of reserves data, its total balance dropped from $44.4 billion in early October to $33 billion by the end of December, representing a fall of nearly 21%.
The Value Of BNB
At the time of writing, its token BNB exchanged hands at $290.39 with slight gains of 0.76% in a day’s trading session as per CoinMarketCap data.
Regulatory Heat From SEC
Binance is also facing regulatory heat from the U.S. Securities and Exchange Commission (SEC). As per a report by Bloomberg, a U.S. SEC lawyer has said that most of the SEC staff believed that Binance US was operating an unregistered securities exchange
The launch of this anti-scam campaign shows how serious Binance is about protecting its customers from fraudsters and hackers alike as well as complying with regulatory standards set forth by authorities like SEC .