Are my coins still safe on the crypto exchange?

BTC-ECHO: After the FTX collapse, many investors are wondering: How safe are my coins still with Binance?

Michael Wild: Absolutely. We’ve serviced billions of dollars in payouts over the last few months. We neither lend nor trade client assets. We have the necessary liquidity and have established a security fund, the so-called SAFU.

Binance is an exchange, not a bank. It is important for us that trading on the platform is successful. I always say: it makes sense if custody is diversified. Have coins on the exchange to quickly respond to market opportunities. But also secure your investments with a cold wallet.

BTC-ECHO: After the FTX crash, Binance had Mazars do a proof of reserve. But it only gives an overview of the existing assets of the exchange. You can’t see which of these belong to customers, and you don’t learn anything about liabilities. Is that really enough to create trust and transparency?

Wild: I think it’s a start. Of course, in the long term it is necessary for us to create regular and transparent reports that provide information about liquidity.

We are absolutely ready to meet any regulatory requirements.

We are initiating resources and measures for this, but it is important that our corresponding applications are processed further and that we remain in dialogue with the regulators. This is our top priority. The reason is that licensing would give our customers greater security and transparency.