Binance introduces $1bn SAFU to protect users of security threat

Binance has introduced a $1 billion Secure Asset Funds for Users (SAFU) Holdings, an emergency fund set aside to protect users’ assets in cases of theft.

This insurance fund comprises BNB, BUSD, and BTC, geared towards protecting the interests of the exchange’s customers from a possible mishap.

Binance in a statement copied to the Ghanaian Times said “The SAFU funds are raised by allocating 10 per cent of all trading fees accumulated on its platform in the case of emergency scenarios, giving Binance the ability to remedy situations where users’ assets are compromised.”

Despite its high-level security technology features, Binance said it “understands that there may be potential cases of breaches where users’ accounts are compromised as a result of hacks or schemes, thus the need for this insurance package to further assure users.”

“Creating a safety pool to protect users’ funds is paramount to maintaining trust and transparency within the ecosystem, especially in the minds of customers and regulators. When users know that their funds are insured against potential breaches, they will be encouraged and confident to continue participating and trading adequately,” Binance said in a statement.

Binance urged all other centralised exchanges to publish their insurance fund wallet addresses as this would benefit the ecosystem by demonstrating to regulators and stakeholders, the collective commitment to user protection and funds management.

The statement said the crypto ecosystem today was more vibrant and attractive than ever before, with more people looking to enter the space to build wealth through a long-term store of value.

“This ecosystem has provided a means to achieve financial freedom and offers viable investment alternatives for people seeking to diversify their assets. To encourage sustainable participation in this space, exchange platforms must ensure that users’ funds are protected from harm’s way,” it said.

It said the crypto platforms could employ a fortified customer service team that was passionate about customer satisfaction that would support retrieving users’ lost funds.

 “Exchanges may offer educational tips to people about security topics in the crypto world – from learning about ransomware to being guarded against pyramid and Ponzi schemes. It is also pertinent to note that while an exchange’s role in tackling cyber-attacks involves a holistic approach from personnel (customer support) to tech innovation, education, and insurance, users also have a role to play in protecting themselves from cyber theft,” the statement said.

BY TIMES REPORTER

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