Sunday, December 3, 2023

What Binance is doing to combat the threat of nested exchanges.

Nested exchanges are increasingly being used for illegal activities. In this service, a user with a clean account makes it available to unknown people for crypto trading. Many cryptocurrency exchanges do not perform the required KYC (know your customer) checks. A nested exchange facilitator can even use multiple accounts to complete a transaction. Binance is at the forefront of tackling these problems. It educates crypto users so they can avoid participating in any illegal activity.

How to Identify a Nested Exchange?

These exchanges look similar to common cryptocurrency exchanges. They have a similar user interface and features. It can be difficult for a novice crypto user to notice any illegality in it. However, there are some signs that indicate it is a nested exchange. You will notice it does not ask too many KYC questions. Users are allowed to create an account and trade cryptocurrencies without much verification. You are not restricted by any trading limit. Always deal with a regulated crypto service platform like Binance that complies with legal and financial laws.

Several Security Problems with Nested Platforms

These service providers are not supervised by the host exchange. You take a big risk if you deposit your fund with such an exchange that does not follow the standard security protocols. People with bad intentions prefer such services that do not require standard KYC/AML procedures. Even if you do not have any bad intentions but place your funds with these platforms, you are encouraging illegal activities. Authorities can close such an exchange without any prior notice, and your fund will vanish in thin air.

Binance regularly audits its business and all personal accounts registered with it. The audit covers an analysis of risks and fund flows. This auditing makes it compliant with the latest crypto and financial laws. Binance takes these measures to protect the crypto ecosystem and provide safe services to its users

Cryptured Team
Cryptured Team
The writers team at is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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