Binance Increases Risk Insurance Fund to $1B

Article Reading Time:
1 min.

The CEO of the Binance crypto exchange announced that against the backdrop of the instability of the cryptocurrency marketincreased the company's emergency response fund.

Changpeng Zhao recalled that the Secure Asset Fund for Users; SAFU) was created back in July 2018.Binance  spends 10% oftrading commissions.

SAFU funds are stored in two wallets in BUSD stablecoins, backed by the US dollar, Bitcoin, and Binance Coin (BNB) native tokens.Based on the size of the fund, it follows that Binance has received at least $10 billion in transaction fees since 2018.

As of January 29, SAFU's assets were equivalent to $1 billion in digital assets.Zhao added that changing market conditions have reduced this amount to $735 million.

"To adjust to recent price fluctuations, Binance has once again replenished the insurance fund to the equivalent of $1 billion."

In February, the businessman called on other cryptocurrency exchanges to follow Binance's lead and create similar "emergency funds."This would make the work of the platforms more transparent and show regulators their intention to protect the interests of investors, Zhao argued.