The user protection insurance fund on Binance has reached a $1 billion valuation

The world’s largest cryptocurrency exchange by trading volume, Binance reported that its Secure Asset Fund for Users (SAFU) has been valued at $1 billion.

In July 2018, the user protection insurance fund was established to safeguard users’ interests. Binance has committed a portion of its trading fee to SAFU and has begun allocating 10% of its trading cost to the funds. To promote transparency, the exchange platform also released the two wallet addresses where the funds are stored. In BUSD, BNB, and BTC, the two wallets hold a billion dollars worth of cryptocurrency.

Other exchanges to follow Binance

Binance CEO Changpeng Zhao advised other cryptocurrency exchanges to follow in their footsteps and release the specifics of their emergency insurance funds as well. He claimed that doing so would increase their transparency and allow them to demonstrate their commitment to regulators.

In the lack of clear rules, many nations’ crypto investors and traders rely primarily on the security precautions of exchange platforms to protect their funds. Despite the stated security, several of the most well-known crypto platforms have been hacked, resulting in the loss of millions of dollars in customer assets. As a result, the role of user insurance money becomes extremely important.

A Binance official responded that the SAFU is intended to protect users’ interests and that money is used at the exchange’s discretion. SAFU is focused on, but not limited to, Binance.com, he continued.

“The purpose of SAFU is to protect Binance users, and we reserve the right to cover issues outside of Binance.com if required.”

While hackers have primarily targeted decentralized exchanges and protocols due to their simplicity of robbery, this does not make centralized exchanges any safer. A hacker managed to syphon funds from 483 user accounts at one of the Crypto.com sites earlier this month, resulting in a reported loss of $33 million. The cryptocurrency exchange claimed it had paid individuals who had suffered losses.