Tightening all Loose Ends: Binance Upgrades its P2P Risk Management System
Binance, the world’s largest cryptocurrency exchange by trading volume has unveiled a new upgrade to its Peer-2-Peer (P2P) risk management system in a bid to protect its users. Per the announcement shared by the exchange, the move to boost its P2P security becomes pertinent as the trading platform saw a skyrocketing growth of users in the first half of the year.
The major upgrades effected include the addition of new requirement to the buy and sell advertisements on Binance P2P. This is targeted at reducing all low-quality, inactive or unreliable advertisements by as much as 99%. The exchange also affirmed it upgraded its matching logic to allow traders get paired only with trusted traders and verified merchants. The firm said in the shared announcement, saying;
“During the first half of 2021, Binance P2P welcomed more users than ever, growing by 10X to more than 1M active users on a weekly basis. We take our responsibility seriously when it comes to making sure that all our users have a safe and secure experience. By securing our platform with industry-leading security measures and proactively launching user-education initiatives to maximize awareness of best practices, we hope to welcome even more users to the world of crypto.”
In all, Binance says it has implemented a T+1 withdrawal limit in some of its markets to protect user’s funds, as well as boosting its algorithms to swiftly detect suspicious activities on the platform, and limit the trading activities of potential bad actors.
P2P platforms are easily prone to being proliferated by malicious actors marring the trading experiences of customers. Users in countries where cryptocurrency related activities are banned like Nigeria relies on Binance P2P trading experience, and the upgrade will serve this growing market niche the more.
Is the P2P Risk Upgrade a Regulatory Nudging?
Binance has come under the radar of several regulatory authorities around the world lately. Besides the wide-scaled bans on the exchange in major crypto hotspots including the United Kingdom, Hong Kong and South Korea amongst others.
As reported earlier by Coingape, the cryptocurrency exchange has recently suspended all trading pairs involving the Korea Won. Additionally, the exchange discontinued all of its P2P merchant application and Korean Language support, as well as the discontinuation of the Korean Won-backed payment option.
The moves are all part of the effort by the exchange to get back on track with regulators, a longer term drive that may involve the firm’s Chief Executive Officer, Changpeng Zhao step down from his role.Source