After the Bybit hack, Binance is urging regulators and industry players to focus more on establishing universal security standards for the crypto industry.
In a Binance live session to commemorate the start of Ramadan, Binance CEO Richard Teng said the crypto exchange plans to focus more of their efforts on ensuring user protection and security in the crypto space.
He specifically emphasized the importance of security after the Bybit hack on Feb. 21, which resulted in a $1.4 billion loss, the largest the crypto industry’s history.
“I think safety and security cannot be emphasized more than now, especially with what happened last week to Bybit. So security is the top of mind. At Binance actually we have invested very heavily in security throughout the years, focusing on the security and compliance,” said Teng in the livestream.
Teng noted that Binance is the most regulated cryptocurrency exchange globally, holding regulatory licenses in 22 jurisdictions. He stressed that compliance and security will become an even bigger priority moving forward. However, he lamented that security remains an ‘underfocused’ aspect in the crypto space.
“Regulators don’t focus so much on security and my latest conversation was actually during Consensus in Hong Kong last week when I met them before the Bybit hack happened,” said Teng who said that he has urged regulators to focus more on security for crypto firms.
He mentioned that Binance has been “heavily invested” in security, as it is the first crypto exchange to establish a Secure Asset Fund for Users or SAFU. Binance created SAFU in July 2018 as an emergency insurance fund to protect user funds in case of extreme situations such as a cyber attack. The exchange has committed 10% of trading fees into the fund.
“We did our best to continue to safeguard our users, but there are no universal standards on that front and it is very disparate in terms of what the standards that different crypto players are embracing. So we want to continue to push that agenda,” said Teng.
According to Regional Growth and Operations Lead of Binance MENA, Bader Kalooti, security has always been “top of mind” for Binance. The exchange employs a multi-layered approach to safeguarding user funds, including multi-factor authentication and AI-powered continuous monitoring to detect suspicious activity and threats.
“In 2024, we prevented around $1.2 billion potential losses for users using this continuous detection mechanism. So those things are very important,” said Kalooti, adding that Binance users are given a unique code used to verify the legitimacy of emails sent by Binance to avoid scams.
