Hong Kong – Following a massive $1.4 billion hack of the Bybit exchange, Binance is urging cryptocurrency regulators and industry participants to prioritize the establishment of universal security standards within the crypto space. The call to action comes directly from Binance CEO Richard Teng, who emphasized the need for enhanced user protection and security during a recent Binance live session commemorating Ramadan.
What: Binance is advocating for stricter, universal security regulations within the cryptocurrency industry.
Why: The impetus for this push stems from the recent $1.4 billion Bybit hack, the largest in crypto history, which highlights the vulnerability of exchanges and the need for improved security measures to protect users’ funds. Teng also pointed out that regulators are not focusing enough on security.
How: Binance plans to increase its focus on user protection and security, leveraging its existing multi-layered security approach. This includes multi-factor authentication, AI-powered continuous monitoring for threat detection (which the exchange says prevented $1.2 billion in potential user losses in 2024), and user verification codes for Binance emails to combat scams. Furthermore, Binance is urging regulators to prioritize security when evaluating crypto firms. They are also pushing for universal security standards to be adopted across the industry. Binance has already invested heavily in security, including the creation of its Secure Asset Fund for Users (SAFU) in 2018, allocating 10% of trading fees to this emergency insurance fund.
When: The call for stricter regulations was amplified following the Bybit hack on February 21. Binance CEO Richard Teng addressed the issue publicly during a live session held recently. Binance created SAFU in July 2018 as an emergency insurance fund.
According to Teng, Binance is already the most regulated cryptocurrency exchange globally, holding licenses in 22 jurisdictions. Regional Growth and Operations Lead of Binance MENA, Bader Kalooti, reiterated that security is a top priority for the exchange. Binance hopes that by advocating for these changes, the entire crypto ecosystem can become more secure and reliable for users worldwide