If you are new to cryptocurrency and signing up for the Binance exchange, you may be asking yourself: “Is Binance safe?”
This doubt is normal. After all, cryptocurrency itself has high risks, and there have been cases of large exchanges failing in the past (such as Mt. Gox, FTX, etc.). Therefore, to evaluate the security of an exchange, you need to look at it from multiple perspectives.
This article will take you to understand the background and security measures of Binance exchange (Binance). We will discuss it from the following aspects:
Is Binance a scam exchange?
What mechanisms does Binance have in place to protect user assets?
What safety matters should you pay attention to when using Binance?
What's the news about the founder being jailed?
Next, let us answer them one by one.
What is Binance? Is it safe?
What is Binance?
Founded in 2017 by Changpeng Zhao (CZ), Binance is the world’s largest cryptocurrency exchange. It provides a variety of services, including:
Financial products: fixed deposits, live deposits, etc.
Spot Trading: Buy Bitcoin, Ethereum and various other cryptocurrencies.
Derivatives trading: contracts, options, etc.
In recent years, the number of Binance users has grown rapidly. According to data in June, the number of users worldwide has exceeded 200 million, and its influence is quite huge. Due to its rapid growth, Binance has also attracted the attention of governments around the world and begun to accept supervision. According to CEOs Richard and CZ, "accelerating compliance" is one of the top goals going forward. As of now, Binance is regulated in 20 countries.
Is Binance a scam exchange?
There are indeed many "fake exchanges" or "fraudulent exchanges" on the Internet. These platforms specialize in defrauding investors of their money. Once you deposit your money, you may not be able to get it back.
However, Binance is not this type of exchange. As mentioned earlier, Binance is the largest cryptocurrency exchange in the world, far larger than other exchanges, and has relatively high security.
However, there are also some criminals who use the name of Binance to commit fraud. Therefore, when registering or using Binance, be sure to confirm the correct website address "Binance.com" and download the official application from the App Store or Google Play.
According to Coinmarketcap, Binance leads the way in terms of spot trading volume and ranks as the largest exchange in the world.
The current regulatory status of Binance. Is it regulated in Taiwan?
As of now, Binance has been regulated in 20 countries around the world, and compliance measures include anti-money laundering policies, combating terrorist financing, etc.
It is worth noting that Binance is currently not regulated in Taiwan. However, according to media reports, Binance has submitted an anti-money laundering statement to the Financial Supervisory Commission in 2023 and may set up a branch in Taiwan under the name of "Seychellois Business Co., Ltd."
How Binance Protects the Security of User Assets (SAFU)
In order to ensure the safety of users’ assets, Binance established the “SAFU” fund, which was established in 2018.
Binance will allocate part of the fee income to the SAFU fund. If there are hacking attacks, system vulnerabilities and other problems that cause damage to users in the future, Binance will allocate funds from the SAFU fund to compensate.
SAFU’s wallet address is public, you can view it here: 0x4B16c5dE96EB2117bBE5fd171E4d203624B014a
Are assets held on Binance safe? How to view proof of reserves
After the FTX incident, many investors had doubts about the security of assets on the exchange. Theoretically, the assets you store on the exchange should belong to you, and the exchange should not misappropriate them without authorization. Therefore, many exchanges have published "certificates of reserves" to prove that they store users' assets at a 1:1 ratio and have not been used for other purposes.
Safety measures you need to pay attention to when using Binance
Although Binance itself has multiple security measures, users also need to protect themselves. Here are safety measures you can take:
Turn on two-step verification (2FA)
Click the avatar in the upper left corner of the app, enter "Account Information" and select the "Security" option. You can set up multiple verification methods such as "Authenticator App" and "Email". Although this may add some operational inconvenience, it can greatly improve the security of your account. Even if someone gets your account password, they won't be able to log in without going through 2FA.
Avoid using public Wi-Fi
Try not to use Binance or perform sensitive operations in a public Wi-Fi environment. If you must use it, it is recommended to use a reliable VPN service for an added layer of protection.
Check account activity regularly
In the "Security" tab of "Account Information", there is an "Account Activity" feature. You can view recent login locations and IPs. If you find suspicious login records, such as places you have never been to, you should be alert immediately, check your device and change your password.
These security measures should not only apply to Binance, but also to other exchange, bank or brokerage apps.
What happened to Binance founder C Z?
Some of you may have heard some news about Binance founder CZ, but what is the truth?
As the world's largest virtual currency exchange, Binance believes that everyone is relatively reassured about its security.
However, when many people think of Binance, they should first think of the news that its founder CZ was sentenced to prison in the United States. What the hell is going on? Is Binance really safe?
Why Binance founder CZ was jailed
Everyone has heard the news more or less about "Binance founder jailed", but what exactly is going on?
Binance founder CZ (Changpeng Zhao) was imprisoned by the United States for violating U.S. anti-money laundering regulations, failing to declare all income to the government, and failing to maintain a good anti-money laundering plan. The U.S. government accused him of illegal activities such as terrorist organizations and ransomware. The group used Binance to launder money, but Binance failed to catch these suspicious transactions.
As a result, Binance was fined $4.3 billion, froze CZ’s assets in the United States, and fined CZ personally $50 million.
Prosecutors originally recommended that CZ be sentenced to three years (36 months) in prison, but the U.S. court considered 161 letters of support and CZ’s cooperation with law enforcement investigations and finally sentenced CZ to four months in prison.
CZ was released from prison on September 29th, Taiwan time, and regained his freedom. After being released from prison, CZ also posted on Twitter that he would publish a book to tell his story in the future, and would not participate in the daily operations of Binance in the future, and would focus on Educationally.
For users, does the jailing of Binance’s founder mean that Binance is unsafe? Not necessarily, because the court imprisoned CZ based on anti-money laundering laws, etc., and did not accuse Binana of using user assets or committing fraud, so the situation is different from FTX.
PTT netizens’ opinions on Binance’s security
The following is what some PTT netizens said about Binance:
Netizen A: Binance is so big, if it fails, the cryptocurrency market may also be doomed.
Netizen B: Although it cannot be said to be 100% safe, among the centralized exchanges, Binance should be the most stable.
Netizen C: No centralized exchange dares to say that it is the safest. After all, even banks may collapse.
Netizen D: If you want to hold cryptocurrency for a long time, it is recommended to use a cold wallet.
Netizen E: If you don’t even dare to use Binance, it may not be suitable for investing in cryptocurrency.
Conclusion: Is Binance Safe?
Overall, Binance, as the world’s largest cryptocurrency exchange, is relatively secure. But investors still need to pay attention:
Confirm official channels: Make sure you are using Binance’s official website or app.
Enhance account security: Turn on 2FA for more secure multi-factor authentication.
Check regularly: Keep an eye on account activity and take precautions before it happens.
Asset Management: For long-term cryptocurrency holdings, consider using a cold wallet for storage.
If you decide to use Binance Exchange, you are welcome to use our registration link and enjoy the highest handling fee feedback on the entire network (there is no one if you go to the official website to register directly). The link is as follows:
Reminder: Cryptocurrency is a high-risk investment, and investors should evaluate the risks themselves. The information in this article is for reference only and does not constitute investment advice.
