The major Bybit hack on February 21, which caused damages of up to $1.4 billion, raised serious concerns about security in the cryptocurrency industry. In this context, Binance, one of the world's leading cryptocurrency exchanges, is making strong efforts to call on authorities and industry businesses to collaborate more closely to establish common security standards.
Emphasizing the Importance of Security
In a recent live stream, Binance CEO Richard Teng emphasized that enhancing security is one of the top priorities of the exchange. He stressed that user safety cannot be taken lightly, especially after unfortunate events like the Bybit hack. "We have invested heavily in security over the years, and this will continue to be one of our top priorities," Teng said.
Binance and Regulatory Compliance
Richard Teng pointed out that Binance is the cryptocurrency exchange with the highest level of regulation in the world, with operating licenses in 22 different jurisdictions. He believes that compliance with regulations and security needs to be further enhanced in the future. However, he also expressed concern that security remains an area that has not received sufficient attention in the cryptocurrency industry.
Promoting Common Security Standards
In a workshop held at Consensus in Hong Kong, Teng called for regulators to pay more attention to security in the cryptocurrency sector. He emphasized that: "The conversation around security should not stop at low standards, but there needs to be a higher framework to ensure user safety."
User Safety Asset Fund
To protect users, Binance established the User Asset Safety Fund (SAFU) in July 2018. This is an emergency insurance fund set up to protect users' assets in emergency situations, such as during cyber attacks. The exchange has committed to transferring 10% of its revenue from trading fees to this fund.
"Millions of users have placed their trust in us. We will continue to do everything we can to protect their assets. However, there is still a significant gap in security standards among companies in the industry," Teng said.
Multilayer Security Strategy
At Binance, security has always been the number one priority. Binance MENA's Head of Development and Operations, Bader Kaloopi, stated that the exchange is adopting a multilayered approach to protect users' assets. These measures include multi-factor authentication and continuous monitoring based on artificial intelligence (AI) to detect suspicious activities and threats.
"In 2024, we have prevented approximately $1.2 billion in potential losses for users thanks to this continuous detection mechanism," Kaloopi emphasized. He also mentioned that each Binance user is provided with a unique authentication code to verify the legitimacy of the emails sent by Binance to prevent fraudulent activities.
A Safe Future for Users
Binance is committed to continuously investing in new security technologies to enhance user experience. The company is actively working with regulators to promote higher security standards in the cryptocurrency industry. According to Teng, this is essential to protect users and ensure the sustainable development of the industry.
"Security is not just the responsibility of one exchange but a shared responsibility of the entire cryptocurrency community," he said.
Conclusion
Events like the Bybit hack not only shake users' trust in exchanges but also raise major questions about safety and security in the cryptocurrency industry. Binance is leading the security revolution with relentless efforts to establish higher standards, ensuring that users are always protected in this increasingly complex digital financial environment. Collaboration among exchanges, regulators, and stakeholders is key to creating a safer and more sustainable cryptocurrency environment in the future.