SAFU and South African Binance users

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SAFU is an emergency insurance fund set up by Binance in July 2018 that protects its users’ funds in the event of losses sustained from hacking or security breaches in the crypto ecosystem.

Through it, a percentage of trading fees have been committed to safeguard users’ existing crypto assets in the event they are lost from any forms of hacking or exploitation.

Binance has topped up the Secure Asset Fund for Users to a value of $1Billion (USD), using various stable coins such as BNB, BUSD, and Bitcoin. This has allowed the value of the fund itself to fluctuate based on the market. BNB and BUSD assets in the fund account for around $ 700 million, while Bitcoin stocks account for $300 million.

This has been done to allow investors to be paid out in the event of losses caused on the network as a result of security breaches, hacks, or other unforeseen exploitations, and has been designed to enhance trust and confidence in the overall crypto ecosystem for Binance users. SAFU is available for the protection of all Binance users.

What SAFU is NOT

The Secure Asset Fund for Users is meant solely for the protection of losses caused by scams, hacks, exploits and other types of unlawful actions on the platform.

The need for a mode of protection that goes above-and-beyond requirements placed on trading platforms is evident in the current climate, which is why Binance has sustainably grown this fund to ensure protection.

For instance, in 2022 alone, crypto investors have lost a collective of over $3 billion as the result of over 125 hacks, according to Chainanalysis.

It is important for traders on the platform to understand that Binance does not, and never has acted as an investment firm or hedge fund, and SAFU is not used in that capacity.

Instead, it provides a solution for traders to pass the fiscal responsibility of funds traded on the Binance platform, the security of which is somewhat covered by the fund.

What Does this Mean for the South African Crypto Ecosystem?

This fund has had a majorly positive impact on the global crypto community, creating a safer, more secure trading environment for Binance users across the globe. Here is what it means for the South African market:

Trade with Trust, Integrity, & Transparency

Building the health of the crypto market requires traders to be able to work with trust. Widespread scams and having little means of protecting digital assets doesn’t exactly add to a sense of confidence.

The Secure Asset Fund for Users gives traders a layer of protection that is characterised by trust, transparency, and integrity, allowing for a more free-flowing trading market where assets are better protected from theft.

Building Confidence in the South African Crypto Market

The South African crypto market is fast growing, but still has a way to go before catching up with the scene in more developed countries.

South Africans are no strangers to stories about exploits, scams, and ingenious modes of fraud in all of its financial markets. This has jaded people on a local level, making them less confident with alternative ways of investing than they should be.

Having this layer of protection gives South Africans more confidence, encouraging more participation in the market, and therefore making things more profitable and engaging for all involved.

Download the Binance App Today & Get Trading

If you would like to get trading on the Binance platform today, you can download the mobile app here to get started immediately.

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