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Binance creates $1 billion insurance funds against hackers, benefiting BNB price

  • The world’s largest cryptocurrency exchange, Binance, has built a $1 billion insurance fund to protect users from hacks. 
  • Binance has restricted accounts of Nigerian users in line with anti-money laundering regulations to ensure the platform’s security. 
  • Analysts believe that Binance coin price is in a critical area; the exchange’s native token recovered from drop to $330. 

Binance has created an insurance fund to protect users from hacks. The exchange has restricted accounts of Nigerian users in line with anti-money laundering regulation. 

Binance Coin price at critical area as exchange launches fund 

Binance was subjected to regulatory scrutiny by regulators worldwide throughout 2021. The exchange follows anti-money laundering regulations and in line with the same restricted accounts of Nigerian users. 

Binance restricted 281 accounts of Nigerian users; 38% of these cases were requested by international law enforcement, according to Binance’s website. A recent blog post reads:

Protection mechanisms such as know your customer, anti-money laundering measures, collaboration with law enforcement, and account restrictions are in place to ensure our community remains protected.

The exchange is keen on securing user funds protecting them from hacks. Changpeng Zhao, CEO of Binance, said,

At Binance, we always said ‘funds are safe,’ and today, the Binance Secure Asset Fund size acts as an effective safeguard as well as protection for users against such unlikely issues.

Binance’s insurance fund is valued at $1 billion. Investors across exchanges have suffered from a loss of funds and network vulnerabilities. Binance intends to fight cybersecurity breaches with its insurance funds for traders. 

Analysts have evaluated the Binance coin price trend, and the exchange’s native token is at a critical level. The token has posted 2.5% gains over the past 24 hours. @FeraSY1, a crypto analyst and trader, notes that Binance coin has recovered from a drop below $330, and token is ready for a continuation of its uptrend. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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