Binance Australia aims to protect its vulnerable users… and koalas
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Binance Australia has delivered its quarterly, WEF-standardised ESG report, and it highlights measures to offer greater protection to vulnerable users, among other things.
Its reporting, according to Binance Australia, makes the crypto exchange the first in the world to do so using Environmental, Social, and Governance metrics under a universal framework developed by the World Economic Forum.
If there’s one thing from the report’s information, shared with Stockhead, that particularly catches the eye, though, it’s a focus from the exchange on protecting consumers.
This reflects the rhetoric the Albanese government has been pushing as its crypto-related headline just lately. And that’s with regard to what seems likely to be a slow implementation of regulations for the blockchain and cryptocurrency industry in Australia.
The Treasury announced last week that it plans to conduct a “token-mapping” audit of the vast amount of digital assets available to Aussie investors. And Binance Australia is likely taking steps to make sure it stands a good chance of fitting the safety-first regulatory narrative.
To that end, the report reveals the exchange is planning “a stringent and user-focused onboarding experience” that should benefit groups vulnerable to a higher occurrence of financial crime.
What constitutes vulnerable in this instance typically includes the elderly, and those with disabilities. Binance Australia identifies this grouping through controls such as age and IP address, in line with government research.
The wider implication, though, for anyone looking to use Binance Australia for the first time, is a more tightly controlled onboarding process to the exchange when it comes to identification verification.
In an email exchange with Stockhead today, Binance Australia CEO Leigh Travers said that its financial crime and risk department has identified the onboarding process as a “key area of focus” for the exchange to combat fraud.
“Currently in Australia, investment scams are one of the top financial crimes in both crypto and traditional finance,” noted Travers, adding:
“From September, as a part of the onboarding experience, we will request both the license number and the card number, to ensure that the ID is the latest version, which will prevent IDs being used that were lost or involved in identity theft.
“There will also be the addition of a quiz for vulnerable users to educate them on what to look out for and how to protect their account. One of the key question areas include if they are being asked by someone else to set up the account or if it’s an account for someone else’s benefit.”
Just quickly, some of the other highlights from the Binance Aus June quarter update include:
• A continued tree-planting initiative around the Western Plains of Victoria with the Koala Clancy Foundation. The Binance.Charity arm of the exchange has been able to contribute more than $40,000 via direct donation between the beginning of April and the end of June.
• Plans for increased crypto adoption, working with payment services firms on the creation and implementation of crypto cards and utilising crypto for payments under Binance Pay.
• An estimation of the exchange’s reach as the official on-screen advertising partner for the Sydney Film Festival. That figure was calculated as more than two million in foot traffic and online audience.
• The early-July launch of Binance Australia Derivatives, through which the company operates under an official Australian Financial Services Licence (AFSL).