Key Takeaways:
- Binance and law enforcement organisations from all over the world have joined forces to start the Joint Anti-Scam Campaign.
- Binance collaborated with the local authorities in Hong Kong to create a targeted alert and crime prevention message.
In order to start an anti-scam campaign, Binance has announced an arrangement with law enforcement organisations. The collaboration, which was made public by the cryptocurrency exchange platform, will enable the newly established cyber security initiatives to become more global.
Binance makes a point that, Top-notch security makes it nearly impossible to break into a bank vault or cryptocurrency exchange. However it is still very simple to persuade someone to give up the keys to their money willingly using a technique called social engineering.
One might receive a call, an email with a dangerous link, or a direct message on Telegram requesting you to divulge personal information.
According to the statement, the coordinated effort began as a pilot project carried out in coordination with the Hong Kong Police Force.
The exchange specifically collaborated with law enforcement personnel to construct a tailored warning and reducing crime message that included useful tips, instances of the most prevalent scams, and essential information and contacts.
(When a Hong Kong-based customer starts a withdrawal on Binance, they receive this notification.)
According to Binance, in the first four weeks following its debut, roughly 20.4% of users either reevaluated their withdrawal request or checked to see if the transaction might be fraudulent.
If the new project goes as intended, it could aid in repairing the harm regulatory scrutiny caused the exchange. There have been recent rumors that Binance may be considering severing relations with its US business partners because of compliance pressure. Additionally, Binance Australia’s derivatives unit is expected to be the subject of a “targeted review” by Australia’s regulatory authority.
The crypto community enthusiastically embraced the announcement of the most recent effort. The majority of users believe that this is a crucial step if Binance wishes to protect their ecosystem.
However some feel joining hands with authorities might come at a cost. User @jarnMod backed this claim by citing the compliant nature of both Paxos and Kraken and still ending up in legal woes.
“We’re hoping to work with law enforcement organisations in other areas going forward,” the statement said. Aside from that, it should be noted that the Join Anti-Scam scheme already supports exchanges’ “anti-crime, and crime prevention efforts globally” through both its law enforcement aid venture and its Global Law Enforcement Training Program.
