The recent Bybit hack, which resulted in a staggering $1.4 billion loss, has reignited discussions around security in the cryptocurrency industry. In response, Binance is urging regulators and industry leaders to prioritize the establishment of universal security standards to better protect users.
During a Binance Live session held to mark the beginning of Ramadan, Binance CEO Richard Teng emphasized the importance of security in light of the Bybit incident that took place on February 21.
He underscored the need for enhanced safety measures in the crypto space and reaffirmed Binance’s commitment to user protection.
“I think safety and security cannot be emphasized more than now, especially with what happened last week to Bybit. So security is top of mind. At Binance, we have invested very heavily in security throughout the years, focusing on security and compliance,” Teng stated.
Teng expressed concerns that security remains an underfocused aspect of crypto regulation. He shared that during the Consensus conference in Hong Kong, he engaged with regulators, advocating for a stronger emphasis on security even before the Bybit hack occurred.
Binance currently holds regulatory licenses in 22 jurisdictions, making it one of the most regulated exchanges globally. Teng reiterated that compliance and security will continue to be key priorities moving forward.
To enhance security, Binance has been heavily invested in developing protective measures for its users. The exchange was the first to introduce the Secure Asset Fund for Users (SAFU) in July 2018, an emergency insurance fund designed to protect customer assets in extreme situations such as cyberattacks.
Binance has committed 10% of trading fees to this fund, reinforcing its commitment to safeguarding users.
“We did our best to continue to safeguard our users, but there are no universal standards on that front. The security measures embraced by different crypto players remain highly disparate. We want to continue pushing that agenda,” Teng added.
Echoing Teng’s sentiments, Bader Kalooti, Regional Growth and Operations Lead for Binance MENA, highlighted the company’s multi-layered approach to security. Binance employs multi-factor authentication (MFA) and AI-driven continuous monitoring to detect and prevent suspicious activities and cyber threats.
Kalooti revealed that in 2024 alone, Binance’s advanced security mechanisms helped prevent approximately $1.2 billion in potential losses for users. Additionally, the platform offers users a unique verification code to authenticate Binance emails and prevent phishing scams.
With security challenges increasing in the crypto industry, Binance remains steadfast in its mission to enhance safety and compliance. The company continues to push for industry-wide security standards to ensure a safer environment for all crypto users.