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Is Binance reliable?
For many investors, securing their crypto assets is a critical issue. Is Binance ? If you're looking for a clear and concise answer, here it is: despite controversies, multiple lawsuits, and the high volatility of a sector subject to strict regulations, Binance remains one of the most resilient and widely recognized platforms on the market. Founded in 2017, it overcame a massive hack in 2019, navigated legal proceedings against its former CEO Changpeng Zhao, and obtained various licenses, including PSAN status in France. Currently, it is implementing security measures such as two-factor authentication, SAFU (Secure Asset Fund for Users), and KYC checks to strengthen user trust.
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Is Binance reliable? A global leader despite the controversies
Binance has become one of the world's most widely used crypto platforms, largely thanks to its volume However , it hasn't always been easy: the crypto exchange has faced regulatory challenges in several countries, and Changpeng Zhao, also known as CZ, has been in the spotlight for various disputes with bodies like the CFTC (Commodity Futures Trading Binance 's longevity , coupled with obtaining various licenses, has fostered a climate of trust among millions of users.
Binance 's success also stems from its ability to list a large number of cryptocurrencies , offer transaction fees often lower than its competitors, and innovate in financial tools such as trading , even though some countries prohibit it due to their regulations. While investors sometimes fear market fluctuations, they primarily seek the reliability of a platform capable of protecting their funds. This is why the exchange has developed a comprehensive ecosystem integrating security, speed, and legal compliance, while also recovering from each crisis.
Changpeng Zhao, an emblematic figure
Binance 's reliability without mentioning its founder, Changpeng Zhao. Originally from China and raised in Canada, CZ is an entrepreneur who made a name for himself after working for various high-tech companies specializing in blockchain .
Its image was nonetheless tarnished by accusations brought by US authorities in 2023: a lawsuit targeted the platform, accusing it of certain breaches of anti-money laundering laws and irregularities in the management of derivatives for US citizens. Despite these controversies, Binance did not cease operations and continued to record very high trading volumes. Proof of this lies in its continued major position in Europe, particularly in France where it is registered as a Digital Asset Service Provider (DASP).
Multiple trials and investigations
In addition to its troubles with the CFTC, Binance has been the target of regulatory investigations in several regions, including Japan, the UK, and Thailand. Some of these cases have led to fines and restrictions on its financial product offerings. However, the platform has consistently chosen to cooperate with the authorities, demonstrating a commitment to transparency and adaptability. In 2024, for example, it had to revise its terms of service in certain countries to comply with local regulations.
These various investigations sowed doubt among many users: questions about legitimacy and long-term reliability quickly arose. However, with each setback, Binance deployed solutions, strengthened its KYC (Know Your Customer) controls, collaborated with external auditing firms, and invested cybersecurity infrastructure . In doing so, the platform forged a reputation as a resilient company, capable of absorbing blows and remaining standing, even amidst the most intense regulatory turbulence.
Is Binance reliable? Security measures
To answer the central question, " Binance reliable?", we must examine its security protocols. In a sector marked by scandals and sudden bankruptcies (such as Mt. Gox or, more recently, FTX ), securing funds is crucial. Binance offers a range of technical measures to ensure that its users' crypto assets remain protected.
Two-factor authentication (2FA)
Many investors consider two-factor authentication an industry standard. At Binance , it's implemented via Google Authenticator or sometimes SMS. In practical terms, even if a malicious individual were to steal your login credentials, they wouldn't be able to log in without the code generated in real time on your phone. This provides you with an extra layer of protection against hacking.
This security is reinforced by a strict withdrawal limit: if a hacker attempts to withdraw crypto assets without using 2FA, the platform will immediately block the transaction. This feature, often combined with anti-phishing codes, strongly deters fraudsters and reassures account holders.
Anti-phishing code
Phishing attacks are among the most feared threats in the decentralized finance (DeFi) . A simple fraudulent email can be enough to steal login credentials if the user isn't careful. To counter these types of scams, Binance offers a personalization code that is added to every official email sent by the platform. This system ensures that the message they receive is indeed from Binance , and not from a malicious entity trying to steal their passwords.
Multiple wallets and better security with a personal wallet
To secure its clients' assets, Binance stores the majority of its funds in offline wallets ( cold wallet ) , thus reducing the risk of hacking. Only a small fraction of the funds are held in hot wallet , which are internet-connected wallets used to facilitate daily withdrawals . This segmentation helps limit the attack surface and minimize potential losses in the event of an incident.
However, the most secure solution remains holding your crypto assets yourself in a personal wallet rather than leaving them on a centralized platform. Users have two main options:
- Hot hot wallet : Software accessible via a browser or mobile application, allowing easy interaction with decentralized platforms ( dApp ). Among the most popular are MetaMask , Exodus , and Trust Wallet . They offer maximum flexibility but remain more vulnerable to attacks due to their constant internet connection.
- Cold cold wallet : Physical devices designed to store cryptocurrencies offline , making them virtually impossible to hack. Reputable brands like Ledger and Trezor allow users to secure their funds with private keys inaccessible to hackers .
The golden rule in crypto: "Not your keys, not your coins" (if you don't own your private keys, you don't truly own your crypto). Binance therefore provides secure solutions, but we encourage users to take full control of their assets through a personal wallet, guaranteeing maximum autonomy and security .
Is Binance reliable? The SAFU, a dedicated protection fund
In May 2019, Binance suffered a major security breach, resulting in the theft of 7,000 BTC , worth approximately $40 million at the time. This incident was fully covered by the Secure Asset Fund for Users (SAFU), an emergency insurance fund established by Binance in July 2018 to protect users in such situations. As a result, user funds were not affected, demonstrating Binance to protecting its customers.
Genesis of SAFU
The SAFU (Supply Emergency Fund) was established in July 2018, a few months after the platform's official launch. Binance decided to allocate a percentage of each transaction fee generated to this emergency fund. The idea is simple: in the event of a hack or major problem, the platform draws on this "financial cushion" to compensate users. Over time, the reserve has reached very high amounts, sometimes exceeding one billion dollars, according to publicly released internal reports.
Usage history
As mentioned, the first significant use of SAFU occurred after the May 2019 hack. All affected users received full refunds, and Binance worked to strengthen its monitoring and authentication protocols. This responsiveness helped maintain trust in the platform despite the scale of the incident.
Since then, the SAFU has remained continuously active. Thanks to publicly available wallet addresses, it's possible to verify the amounts it contains. According to an audit published in 2024, Binance confirmed that approximately $1 billion in USDC was secured in this fund. This rare transparency helps improve the exchange's reputation
Is Binance reliable? Binance 's regulations and licenses
To maintain its status as a crypto giant, Binance must comply with increasingly strict rules. Global financial authorities, whether the SEC (Securities and Exchange Commission) in the United States or European bodies like the AMF (Autorité des Marchés Financiers) in France, now demand significant guarantees in terms of anti-money laundering controls, investor protection, and tax transparency.
PSAN registration in France
Cryptocurrency regulation in France is among the most stringent in Europe. Since 2019, France has required mandatory registration for platforms wishing to offer crypto custody or buying/selling services. This is known as the Digital Asset Service Provider (DASP) status. In May 2022, Binance successfully obtained this approval from the AMF (French Financial Markets Authority), becoming one of the few international companies authorized to operate in the French market.
International expansion and regulatory compliance
Binance has significantly strengthened its regulatory framework by obtaining 21 licenses and registrations worldwide. These approvals allow it to operate legally in multiple jurisdictions and offer a variety of services, ranging from cryptocurrency exchange and digital asset custody to financial services.
Main licenses obtained by Binance
- France : Registered with the Autorité des Marchés Financiers (AMF) as a Digital Asset Service Provider (DASP) (E2022-037), enabling the custody, trading and exchange of digital assets.
- Italy : Approved as a Digital Asset Service Provider (DASP) by Organismo Agenti e Mediatori (OAM) (PSV5), authorizing the exchange and custody of crypto-assets.
- Kazakhstan : License issued by the Astana Financial Services Authority (AFSA) , allowing trading, custody and investment services within the Astana International Financial Centre (AIFC) .
- Dubai : Approval from the Dubai Virtual Asset Regulatory Authority (VARA) as a Virtual Asset Service Provider (VASP) , authorizing brokerage, exchange and lending services.
- Bahrain : Holder of a Category 4 Crypto-Asset Service Provider (CASP) license issued by the Central Bank of Bahrain, covering full exchange and custody operations.
- Salvador : Holds a Digital Asset Service Provider (DASP) license from the Comisión Nacional De Activos Digitales (CNAD) and a Bitcoin Service Provider (BSP) license , allowing it to operate legally in the country.
A strategy for adapting to local regulations
Obtaining these regulations directly answers the question , " Is Binance A platform with a wide range of approvals inspires greater confidence and demonstrates its commitment to respecting legal frameworks. While Binance has faced lawsuits and investigations , the platform has adopted a strategy of transparency and cooperation , rather than remaining opaque—a relatively rare approach in the cryptocurrency exchange industry.
For a complete and up-to-date list of licenses obtained by Binance , users can consult the official Licenses and Registrations Binance website .
Is Binance reliable? The longevity of a rapidly expanding platform
While reliability is often measured by technical quality and legal compliance, it is also assessed over time. The history of Binance, founded in 2017, is intertwined with the explosion of the crypto market, marked by spectacular bull runs and successive bear markets. Many competing platforms suffered setbacks, or even went out of business. Binance, however, managed to grow, diversify, and establish itself as a key player.
Founded in 2017 and experiencing exponential growth
Originally, Binance was just another startup, launched following a token-based funding round (ICO). By the end of 2017, the company had capitalized on the surge of interest in Bitcoin and quickly gained market share thanks to its low fees and the speed of its trading . The regular addition of new, popular cryptocurrencies, such as BNB (its own currency), further fueled the community's enthusiasm. In less than a year, Binance became the world's leading exchange in terms of daily trading volume.
Is Binance reliable? Potential risks of using Binance
Centralization of assets
By definition, a centralized exchange like Binance retains control of your private keys if you leave your funds on the platform. In the event of a major problem, your assets could be frozen or temporarily inaccessible. Following the principles of decentralized finance , some purists recommend transferring all assets to a cold wallet . However, this solution may be less practical for trading .
Even if the platform has SAFU and insurance, no one is immune to disaster: in crypto, as in the traditional banking sector, zero risk does not exist.
Regulatory volatility
The cryptocurrency sector has never been under such intense scrutiny. Binance must contend with anti-money laundering laws, tax regulations, and increased pressure from various governments, including the United States. Should regulators impose new bans or restrictions, the platform may have to reduce some of its services, potentially causing inconvenience for users.
Rumors of a total ban, or of withdrawal restrictions in certain countries, sometimes circulate on social media. While unconfirmed, these speculations reflect the climate of uncertainty in which Binanceoperates. Most often, the exchange avoids these extreme scenarios by negotiating with the authorities, but it's important to be aware that everything can change rapidly.
Complexity for novices
Binance offers a range of highly advanced tools – spot trading staking , etc. For a newcomer, the interface can be difficult to master. Incorrect withdrawal addresses, forgotten memos, etc., can lead to the permanent loss of funds, given the irreversible nature of the blockchain.
Is Binance reliable? How can I secure my own funds on Binance ?
Even though Binance has implemented numerous security measures, ultimate security also depends on the user. It is strongly recommended to take additional precautions to further reduce the risk of intrusion or human error.
Multiplication of protective layers
In addition to 2FA and anti-phishing codes, you can filter authorized withdrawal addresses. Specifically, you create a whitelist , and any attempt to send funds to an unknown address is blocked. This feature is particularly useful for those with large portfolios. You can also configure real-time notifications on the mobile app or via email to be alerted every time you log in or withdraw funds.
Some users opt for biometric verification available on the mobile app. This means that to log in or authorize a withdrawal, you must scan your fingerprint or face. This procedure, combined with 2FA (two-factor authentication), makes access to your account virtually impossible without your consent.
Avoid phishing attacks
Many hacks result from user error, such as entering login credentials on a fake website with an identical design. To reduce this risk, it's advisable to bookmark the official Binance and never click on links received by email or on suspicious third-party websites. Similarly, never share your private key or recovery phrase with anyone. Binance will never ask for it; anyone who does is a scammer.
Beyond personal vigilance, keep your computer equipment up to date, with antivirus and firewall software enabled. Also, avoid using public devices to log in to your account. If you follow these principles, the risk of falling victim to a scam is drastically reduced.
Conclusion: Is Binance really reliable?
So, Binance reliable ? In view of the multiple security measures (2FA, anti-phishing code, offline wallets), the existence of the SAFU, its resilience in the face of crises and its numerous regulatory initiatives (PSAN status in France, licenses in various countries), we can reasonably say that this platform is among the safest in the crypto market.
Of course, trust remains a fragile thing in a world where hacks and sudden bankruptcies are not uncommon. But Binance's tenacity, its longevity since 2017, its ability to manage hacks (including the one in 2019), and its willingness to comply with local laws indicate a desire to maintain its leading position in the long term. Despite the lawsuits, Changpeng Zhao and the team have managed to recover and strengthen the exchange's position within the crypto ecosystem.
Nevertheless, it remains your responsibility to adopt good security practices. Even the most secure platform is vulnerable to serious human error or inadvertently disclosed login credentials. If you value complete control, using a cold wallet is essential. For traders and investors seeking an advanced interface, Binance likely meets the requirements: low fees, secure storage, and ongoing compliance with international standards.
For the user, this means remaining vigilant: never neglect good security practices, avoid unsecured access, and store some of your funds yourself if necessary. If you plan to withdraw your funds , be aware that a transfer from Binance to your bank account is entirely possible, provided you follow the steps correctly. For a complete tutorial, you can consult our dedicated article on this topic by following the blue text.
Ultimately, if you're still wondering, remember this: yes, Binance does everything it can to be reliable, and it's just as reliable (if not more so) than most of its competitors in the crypto ecosystem. However, there's no such thing as zero risk, and the best approach is to diversify, remain vigilant, and protect your credentials. Reliability also means sharing best practices between the platform and its users.
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Yoann
Training engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I participate in its democratization by developing Crypternon.
