Binance recently announced that its Secure Asset Fund for Users (SAFU) reached the valuation of $1 billion. The platform had established the emergency insurance fund in July 2018 in order to protect the funds of its users. To make sure the fund grows to a sizeable level so as to safeguard user interests against security breaches, Binance committed a certain percentage of the trading fee to it.
Talking about the need for building trust and transparency in the space, CZ, founder and CEO of Binance remarked, “Transparency is an important element of building trust, which is why we are publishing our insurance fund wallet address.” Binance is also calling all centralized exchanges to publish their insurance fund wallet addresses to demonstrate to governments, regulators, and important stakeholders, the collective commitment to uphold trust, integrity, and transparency in the crypto space.
A robust compliance program
The platform has repeatedly shown its allegiance to building a robust compliance program alongside proactive companies in the space and regulatory authorities. While compliance and cooperation are interdependent factors, Binance has worked proactively with policymakers and regulators to build rules and frameworks to organize and uphold the industry’s values while also ensuring a solid foundation for sustainable growth.
Some of the major steps taken by the platform in this regard include:
- Growing their compliance team by 500% in the past year to help maintain compliance in operating jurisdictions around the world.
- Strategizing with compliance advisors who help with high-level regulatory guidance.
- Expanding global KYC compliance as a step towards user protection and a safe crypto environment.
- Deploying CipherTrace Traveler, a tool that helps to meet the highest standards for global anti-money laundering compliance.
- To collaborate with law enforcement and governments better, Binance also launched its own Law Enforcement Request System or LERS. This helps to review cases individually and disclose information according to legal requirements as per their Terms of Use and applicable laws.
Keeping user interest in mind
Apart from their compliance initiatives, Binance also works on additional ways to protect their user’s interests and give them a smooth experience in the crypto space. As an ecosystem provider, some of the steps they take include:
- From anti-addiction notices to ‘cooling off’ suspension features, Binance is the first and the only exchange that has implemented technical and educational measures to make sure that users trade responsibly.
- User-accessible security tools such as hardware, app-based, SMS and email 2-Factor Authentication methods, etc. help to safeguard the platform and create a safe environment for users.
- With a unilateral approach to preventing bad actors from using the platform, Binance works with local law enforcement to take down cybercriminal groups. They also work with private-sector chain analytics companies to identify and offboard suspicious accounts.
- By creating free educational content on Binance Academy, Binance dedicates resources to increase not only crypto access but also literacy for users both on and off their ecosystem.
An inclusive P2P platform
Binance’s P2P (peer-to-peer) cryptocurrency platform has seen significant growth in the past year with more than 1million active users every week. The platform deploys a ‘choose how you trade’ approach that has made it one of the most convenient and easy-to-use platforms for anyone who is looking to start trading crypto.
The Secure Asset Fund for Users is one of the many initiatives taken by Binance to ensure that integrity is upheld in the ecosystem. By closely monitoring the size of the SAFU, the platform will keep an eye on the funds and make sure they are adequate to protect users’ interests.
For more information on Binance, please check out their official website.
Disclaimer: This is a paid post and should not be treated as news/advice.
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