Crypto Exchange Binance Faces A Hefty Consequence Of $2 Million For Sending Off Excessive Spam

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Binance has been fined a hefty $2 million penalty for their infringement of anti-spam regulations. It was due to millions of emails sent out by Binance that failed to comply with the requirements set forth by Australia’s Communications and Media Authority (ACMA).

The court ordered the crypto-currency exchange to undergo a three-year review of its e-marketing practices and commit itself to improvement announced by The Australian Communications and Media Authority (ACMA).

Between October 2021 and May 2022, Binance Australia delivered over 5.7 million emails, making it tricky for recipients to unsubscribe from the mailing list, as they were requested to have an account or needed a way out of the system altogether.

Moreover, 25 emails were distributed without permission from the receivers – a violation of ACMA’s Spam Act.

ACMA’s chairperson Nerida O’Loughlin adamantly declared that since 2003, no valid reason justifies large companies disregarding compliance protocols.

Customers should not be made to log in to stop receiving messages,” said O’Loughlin.

ACMA severely reprimanded Binance Australia for its alleged failure to address customer complaints about its email marketing practices.

It is also disappointing that the ACMA had contacted Binance Australia on several occasions leading up to the investigation to warn that it may have had compliance problems and failed to take adequate action,” O’Loughlin added.

Established in China by Changpen Zhao or CZ, Binance is the premier crypto-currency exchange on a global scale. With a history marked by multiple investigations by US and British financial regulators and tax agencies, its chequered history is undeniable.

In 2021, reports revealed that the exchange had shared confidential client information with Russia’s FSB foreign intelligence service. This week, Binance witnessed an immense amount of capital outflow over 24 hours – totalling a colossal US$1.9 billion – due to FTX’s collapse in the cryptocurrency exchange market.

In response to the Chinese government’s strict policies on cryptocurrency trading, Binance quickly relocated its headquarters elsewhere to continue offering its services worldwide.

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