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Amid the current volatility in the cryptocurrency market, making a minor trading loss is understandable, but losing one’s funds to malicious actors could be very damaging. Yet, people frequently fall victim to scammers who compromise users' online accounts, a trend Binance CEO Richard Teng just commented on.
Key security measures taken by Binance
In a message on X, Richard Teng assured users that safety remains a major priority at the exchange. He emphasized that the exchange prioritizes users' safety even in regions without clearly defined crypto regulations.
Teng highlighted Binance’s efforts over the years in taking the initiative to build trust and enhance security in the crypto industry.
Yuri MolchanCreating the Secure Asset Fund for Users (SAFU) demonstrates Binance’s commitment to financial security.
This reserve fund is established to protect users in case of unforeseen events. Such incidents include hacks by malicious actors on users’ funds on the exchange or when the platform experiences failures.
Launched in 2018, SAFU currently has over $1 billion in assets as an emergency fund, just like traditional banks have fractional reserves.
The Binance CEO also emphasized the responsible trading program, which is specifically designed to promote safe trading habits and address concerns about market manipulation.
Binance community calls for more protection
Teng maintained that the Binance proof of reserve is another way the exchange builds trust. It allows users to verify that Binance has sufficient reserves to back customer deposits. This measure is reassuring, particularly given the loss FTX users suffered when the exchange collapsed.
Gamza KhanzadaevSome users have acknowledged Binance's efforts in reassuring them of the safety of their funds on the exchange. They noted Teng was fulfilling his promise of sticking with Binance's core values when he assumed the role of CEO.
However, some have called for implementing more measures to protect the platform and retail traders.
Vladislav Sopov
Dan Burgin