Binance Affirms Will Not Use Customer Money For Trading

After the collapse of FTX, Binance has many moves to strengthen customer trust as well as demonstrate transparency. The market’s largest crypto exchange asserts separation between customer funds and corporate assets, and an isolated customer crypto-asset chain wallet is under construction.

On November 26, the official Binance blog released a statement about wallet transparency, indicating that the exchange places all of its customers’ crypto assets in separate accounts, and that the This account is managed separately from the accounts used to hold the exchange’s crypto assets.

Uses its own wallet infrastructure to protect user assets and Binance’s own assets. The exchange also confirmed that it will only use its own money and will not use customers’ money to trade on its own account.

The exchange also revealed that it is building customer crypto asset wallets on a segregated chain to comply with upcoming European MiCA regulations.

As mentioned in an earlier Coincu News article, it is claimed that a $1 billion Industrial Recovery Initiative (IRI) was issued through the Binance cold wallet. This is a large amount withdrawn from the exchange’s account, while the $1 billion SAFU insurance fund can be withdrawn from a hot or cold wallet.

Investor confidence in the cryptocurrency market fell again significantly after the collapse of Sam Bankman-Fried-FTX’s giant empire. Therefore, the recent moves to strengthen the trust of Binance have also brought a certain effect to the community.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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