The SAFU Fund: Insurance Dedicated to Users
After a security incident in 2018, Binance established SAFU (Secure Asset Fund for Users), continuously funded by a portion of trading fees. As of now, the SAFU fund exceeds $1 billion. If the platform suffers a hack that results in user asset losses, the SAFU fund is used to fully compensate affected users. Very few cryptocurrency exchanges have this kind of mechanism.
Cold Storage and Technical Security
Binance stores the majority of user assets in offline cold wallets, with only a small fraction kept in hot wallets for daily withdrawals. Cold wallets are not connected to the internet, making them immune to remote attacks. Additionally, Binance uses multi-signature technology — a large transfer requires authorization from multiple administrators simultaneously, so a single compromised key won't lead to stolen funds.
Regulatory Licenses
Binance has obtained operational licenses in multiple countries and regions worldwide, including France, Dubai, and Japan. Holding these licenses means Binance must comply with local financial regulations and undergo regulatory audits, including anti-money laundering measures and user fund protection requirements. This is fundamentally different from the completely unregulated exchanges of the early days.
How's the Security Track Record
In the 2019 hack, Binance lost approximately 7,000 BTC, but all losses were fully covered by the SAFU fund — no user bore any loss. Since then, Binance has significantly upgraded its security infrastructure, introducing more advanced risk control systems and AI-powered monitoring. Based on recent years' performance, Binance has consistently ranked among the top in industry security assessments.
Platform Security ≠ Your Account Security
One thing must be made clear: no matter how secure the Binance platform itself is, your individual account security still depends on you. Using weak passwords, not enabling 2FA, or carelessly clicking phishing links — these are things the platform can't protect you from. The exchange's security measures are a baseline safeguard, but your personal security habits are the first line of defense.
If you trust Binance's security and want to get started, you can sign up for Binance and complete all the recommended security settings right after registration.