Binance Calls for Stricter Security Regulations After Bybit Hack

Following the massive $1.4 billion hack on Bybit on February 21, Binance is urging both regulators and industry players to push for stricter, universal security standards across the cryptocurrency sector. In a live session marking the start of Ramadan, Binance CEO Richard Teng emphasized that security and user protection must be a top priority moving forward.

The Bybit hack, the largest in crypto history, has intensified concerns about the safety of assets held on exchanges. Teng stressed that the incident highlights the need for a more rigorous approach to security in the industry. “Safety and security cannot be emphasized more than now, especially with what happened last week to Bybit,” Teng remarked, pointing to the hack as a clear wake-up call for the sector.

Teng further highlighted Binance’s commitment to security, noting that the exchange has been heavily invested in protective measures for years. Binance is also the most regulated cryptocurrency exchange globally, holding licenses in 22 jurisdictions. This commitment to compliance and security will only grow in importance, according to Teng. He pointed out, however, that despite Binance’s efforts, the broader crypto industry has not yet placed sufficient focus on security.

In fact, Teng expressed concern that regulators have not made security a primary area of focus. He recounted a recent conversation with regulators during the Consensus event in Hong Kong before the Bybit hack occurred, where he stressed the need for greater attention to security across crypto platforms.

Binance itself has been proactive in securing user funds, with one of its standout initiatives being the creation of the Secure Asset Fund for Users (SAFU) in 2018. This emergency insurance fund is designed to protect users in extreme situations like cyberattacks. Binance commits 10% of its trading fees to the SAFU fund to ensure users’ funds are safeguarded.

Teng also underscored the absence of universal security standards in the crypto space, with different exchanges and platforms adopting varying levels of protection. Binance aims to advocate for the establishment of consistent security standards across the industry.

Bader Kalooti, Regional Growth and Operations Lead at Binance MENA, added that security has always been a key priority for the exchange. Binance uses a multi-layered approach to protect user funds, including multi-factor authentication and AI-powered continuous monitoring to detect suspicious activity. In 2024 alone, Binance’s detection mechanisms prevented potential losses of around $1.2 billion for users.

Binance’s efforts include providing users with a unique code to verify the legitimacy of emails from the exchange, further reducing the risk of scams. As the crypto space faces increasing security challenges, Binance is actively pushing for a safer, more secure environment for users worldwide.