Key Takeaways
- Binance has a wide range of security measures, including 2FA, wallet address whitelisting, advanced encryption, cold asset storage, and an emergency asset fund;
- The exchange is officially licensed in 21 countries and adheres to international sanctions when it comes to restricting certain countries;
- You can boost the security of your Binance account by passing KYC and enabling features like 2FA and anti-phishing code.
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Even after all this time, the crypto trading scene is the Wild West equivalent of finance – at the end of the day, it’s just you and your trusty crypto exchange against the world. Top-rated centralized exchanges like Binance promise a much more secure and regulated trading experience. Nevertheless, in the face of a growing number of controversies, it's time to settle the score anew – is Binance safe?
If you’re looking for something more than just a cursory reassurance or fearmongering click-bait, you’ve come to the right place! Let me give you a full breakdown. In this article, I will dissect Binance security from every angle: basic account protection measures, asset security, platform infrastructure, licensing, regulations, and users’ personal experience (including my own).
Without further ado, then, let’s dig under the battlements of this A-list exchange and see if they’re enough to keep your crypto safe!
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Table of Contents
- 1. Binance Security Measures: An Overview
- 1.1. Account Protection Features
- 1.2. Platform Security Infrastructure
- 1.3. The Secure Asset Fund for Users (SAFU)
- 2. How is Binance Regulated?
- 2.1. Licenses
- 2.2. Restricted Countries
- 2.3. KYC and AML Compliance
- 2.4. Proof of Reserve Audits
- 3. Binance's Track Record
- 4. User Experience and Trust
- 4.1. Customer Support
- 4.2. User Feedback
- 5. Is Binance Safer Than Other Exchanges?
- 6. How to Use Binance Safely: Best Tips & Practices
- 6.1. Complete KYC Verification
- 6.2. Enable 2FA
- 6.3. Enable Anti-Phishing Code
- 6.4. Get Binance Web3 Wallet
- 7. Conclusions
Binance Security Measures: An Overview
Unpacking a crypto exchange’s security system is no easy task – it consists of so many different features and safeguards, all working to ensure that you’re the only one who can access your account and funds. Some of those components are visible and can be opted in or out of, while others operate in the background.
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Before we proceed, I should point out that the question, “Is Binance safe?” is ultimately too broad and vague to have one definitive answer. “Safe” for whom exactly, and for which tasks or purposes? In this article, I’ll do my best to be specific.
Account Protection Features
In a centralized crypto exchange, your personal account is your first line of defense – which is why it’s so crucial to reinforce it with adequate security measures. How safe is Binance when it comes to user-level security, then?
Here’s the list of major account security features you’ll find:
- Two-factor authentication (2FA);
- Wallet address whitelisting;
- Anti-phishing tools;
- Device management;
- Security notifications.
One of the first things you’ll be prompted to do after creating a Binance account is to enable two-factor authentication. It’s a basic security measure found on most exchanges that requires two forms of identification before allowing access, instead of simply logging in with your password.
There are four ways you can use 2FA on Binance: your mobile phone number, a passkey, Google Authenticator, or Binance Authenticator, which, according to the company, is a more secure alternative because it stores your authentication codes locally on your device instead of sharing them across multiple devices. You can easily set up Binance Authenticator both on the Binance mobile and web app.
Withdrawal whitelisting is another security feature offered by Binance. It’s disabled by default, but if you turn it on, you will only be able to withdraw funds to addresses that are on the whitelist. This is a simple but very effective way to prevent theft: even if someone does hack into your account, they still won’t be able to transfer your crypto to their own wallet. Adding a new address to your whitelist requires both 2FA and email verification.
In addition, Binance has a pretty solid set of anti-phishing measures. If you really want to take your security to the next level, you can create an anti-phishing code that will be added to the emails you receive from Binance so that you can see they’re legitimate. On February 26, 2025, the company announced that it will be expanding this feature to SMS messages in certain countries and regions, too.
If you’re still in doubt, though, or if you want to check a source or content other than an email or SMS (such as a social media channel claiming to be Binance), you can enter the address in the Binance Verify to check if it’s the real deal.
Those are the core security measures that will help safeguard your account. However, if the unthinkable happens and your account gets breached, Binance still offers a few additional features to alert you as soon as possible. In case of any suspicious activity, you’ll get a security notification email. You can also check your activity across all devices.
Now that you’ve absorbed all this, here’s the question to ask: is Binance safe enough at the account level if you take advantage of all of these above-mentioned features? I’d say the answer is a resounding “yes”.
Platform Security Infrastructure
While the features I covered in the previous section are all out in the open, the ones I’ll discuss here are more of back-end warriors, working quietly in the background to ensure the integrity of the platform.
Enter Binance’s underlying security infrastructure and its core pillars:
- Cold asset storage;
- Hot wallet limits;
- Advanced encryption;
- Real-time monitoring tools;
- Bug bounty program.
If you’re wondering, “Is it safe to hold crypto on Binance?”, let me give you a quick crash course on how Binance protects your assets. When it comes to crypto storage, there are two types of wallets: hot and cold ones. Hot wallets are connected to the internet, while cold wallets operate entirely offline, making them much more secure.
The good news is that the majority of user funds on Binance are in cold storage – this means they can’t be accessed through typical online attacks. Even if Binance's website or systems are compromised, the bulk of user funds remain untouched, and their access is protected by multi-signature and threshold signature schemes (TSS). Only a small portion of your crypto is kept in hot wallets (online) for day-to-day withdrawals and trading liquidity.
Speaking of withdrawals, on most exchanges, they’re subject to daily and monthly limits as an extra security precaution – and Binance is no exception. How much you’re allowed to withdraw depends on your verification level (more on these later) and VIP tier.
Another standard security measure Binance employs is advanced encryption. All sensitive user data (like personal info, passwords, and KYC documents) is encrypted using AES-256 — the current industry standard for high-security encryption.
Binance’s platform security infrastructure isn’t limited to static measures, however. The company utilizes a hybrid approach of AI and manual advanced analytics to monitor all transactions and other activities in real-time. Unusual activity from your account might cause the platform to suspend your withdrawals for 24-48 hours (as inconvenient as it might be - better safe than sorry!).
As the final touch, there’s the Binance Bug Bounty program. As any developer knows, having an extra pair of eyes to tip you off to what you missed is invaluable help – and with a user base of over 270 million people, you can have a whole army of assistants able to spot and point out bugs and other vulnerabilities. That’s exactly how this program works: users are invited to spot bugs in exchange for rewards of up to $5,000.
The Secure Asset Fund for Users (SAFU)
Even with the most advanced and reliable security system, disasters can never be completely ruled out. Following that line of thinking, the question we should be asking isn’t, “Is Binance trustworthy right now?” but rather, “Is Binance safe for long-term?”. Let’s meet the company’s answer to that question – the Secure Asset Fund for Users (SAFU).
Established in July 2018, this fund stores emergency assets that can be distributed as refunds to users in cases of unforeseen system-wide attacks and security breaches. The way it works is pretty simple: Binance takes a portion of all trading fees (around 10%) and allocates it directly to SAFU on a daily basis.
The fund is made up of Binance’s most popular assets like BTC, BNB, and stablecoins. They’re held in separate cold wallets, meaning they’re isolated from Binance’s day-to-day operations and internet-connected systems. Every once in a while, the company discloses the wallet addresses so users can verify the fund’s size and balance on the blockchain.
During one of the latest of these transparency reports, SAFU was confirmed to contain 1 billion USDC.
How is Binance Regulated?
That’s it for the core Binance security measures – hopefully, you now have a well-rounded picture. Is it safe to hold crypto on Binance, then? It seems so – but we’ve only just scratched the surface! When it comes to long-term security, breaches and cyberattacks aren’t the only challenge to worry about. What users ultimately need is legal and financial accountability.
In other words – is Binance legit?
Licenses
Regional availability and licensing have always been a bit of a sore spot for centralized crypto exchanges. The unfortunate truth is that crypto still suffers from an ambiguous legal status in many parts of the world, which makes things like obtaining a financial license a challenge in certain countries.
After doing my research, though, I can confirm that Binance is definitely on top of its game when it comes to regulations – as much as is possible or realistic when taking the above-mentioned nuances into account. This exchange operates in over 180 countries, and while it’s not officially licensed in every country or region it’s available in, it’s amassed a large body of regulatory framework over time:
Region | Countries Where Binance is Licensed |
|---|---|
Europe | France, Italy, Lithuania, Spain, Poland, Sweden |
Commonwealth of Independent States | Kazakhstan |
Middle East | UAE, Bahrain |
Asia-Pacific | Australia, India, Indonesia, Japan, New Zealand, Thailand |
Americas | Mexico, El Salvador, Argentina, Brazil |
Africa | South Africa, Seychelles |
Table: Binance licensed countries
With 21 countries in total, this is quite an impressive list – if you live in any of those countries, you can rest easy knowing Binance is properly regulated there!
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Restricted Countries
As wide as Binance’s global reach is, there are still a number of countries where it’s not available, either due to regulatory difficulties or because the country in question falls under international sanctions the company adheres to.
As of writing this, Binance doesn’t operate in: Canada, Netherlands, United States, Cuba, North Korea, Iran, Syria, and the Crimea region and any non-government controlled areas of Ukraine.
Even though American traders can’t access regular Binance, there’s a separate version of the platform specifically for the U.S. market, called Binance.US. Australians have their own dedicated version of Binance, as well.
You’re probably wondering, “Is Binance US safer than regular Binance, or at least no less safe?” Don’t worry – it’s registered with FinCEN and meets the SOC 2 and ISO exam requirements. All assets are kept in US-based storage facilities, and the platform itself has the same other security measures as the international version.
KYC and AML Compliance
Aside from holding operational licenses, centralized crypto exchanges are expected to comply with the same KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations as traditional banks. That way, they prevent their services from being used for illicit purposes like terrorism financing.[1]
One of the first things a new user is invited to do is verify their identity so that the platform knows who they are and can trust them with transactions and withdrawals. Many exchanges only have standard KYC verification, but Binance offers multiple levels, depending on the amount of privacy you want and the functionality you need:
Level | Requirements | Trading Features | Withdrawal Limits |
|---|---|---|---|
Level 0 (Unverified) | Email verification | ✗ | ✗ |
Level 1 (Basic) | Email verification, name, birth date, personal ID document, selfie check | Spot trading | $50,000/day |
Level 2 (Advanced) | Everything in Level 1 + proof of address | Margin, futures, and OTC trading | $2 million/day |
Level 3 (Corporate) | Everything in Level 2 + business documentation | Business-related services | Custom |
Table: Binance KYC levels
Binance also practices standard AML procedures, such as customer risk assessment and Enhanced Due Diligence (EDD) for high-risk customers.
Proof of Reserve Audits
Many exchanges claim to have a 1:1 reserve – meaning that the exchange holds exactly one unit of asset for every unit of liability it has (in this case, the assets held on behalf of its users).
To prove that, they’re expected to undergo a process called “Proof of Reserve”, which usually involves an independent third-party audit verifying that the exchange's total reserves (the crypto and fiat it holds) match or exceed the total customer balances. Otherwise, any exchange could claim to be 1:1-backed and demand that users simply take them on their word!
If you find yourself asking, “Is Binance legit?”, all you need to do is head over to the “Proof of Reserves” section under the “Services” tab at the bottom of the landing page and view the report yourself. Binance undergoes regular monthly PoR audits that use the zk-SNARK cryptographic mechanism, allowing the data to be verified without revealing it.[2]
It turns out, many of the most popular cryptocurrencies on Binance not only match but actually exceed the 1:1 ratio!
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Binance's Track Record
You could spend hours learning the ins and outs of the Binance security system – but, at the end of the day, the data speaks for itself! It’s time to examine what sort of success rate this exchange has had so far in keeping its users’ funds safe. Is Binance trustworthy when it comes to not only preventing attacks but responding and mitigating their damage, too?
Let’s take a look at the history of major security breaches on Binance since the exchange’s founding in 2017:
Date | Details | Response | Impact |
|---|---|---|---|
March 2018 | Hackers used API keys and phishing attacks to compromise accounts and inflate Viacoin’s price. | Binance temporarily froze all withdrawals while investigating the attack, reversed the trades, and prevented losses. | Enhanced security protocols, improved API management, and stronger withdrawal security. |
May 2019 | Hackers stole 7,000 BTC by exploiting vulnerabilities using phishing, malware, and social engineering. | The breach was detected within hours of the attack and all withdrawals immediately paused. Affected users were reimbursed through SAFU. | Implementation of new features like cold asset storage and wallet address whitelisting. |
July 2019 | A hacker claimed to possess KYC data, releasing over 10,000 user photos. | Binance investigated, offered a reward for the hacker’s identification, and boosted KYC security. | Raised concerns about data privacy and security of personal information. |
November 2022 | Hackers exploited the BNB Chain’s cross-chain bridge, minting 2 million unauthorized BNB tokens. | BNB Chain was suspended and then secured. Lost funds were traced and recovered through SAFU. | Highlighted vulnerabilities in cross-chain bridges and Binance’s rapid crisis management. |
Table: History of Binance breaches and security attacks
It’s important to mention that none of those cases resulted in permanent loss of funds for users, thanks to the SAFU fund I covered earlier. What's more, Binance responded quickly and kept the user base informed throughout the investigation and the aftermath – which is more than could be said for some other exchanges that try to brush this sort of thing under the rug!
However, security breaches aren't the only controversy the company has had to tackle. In November 2023, Changpeng Zhao, Binance's CEO at the time, was hit with federal charges for fraud and money laundering. The company was eventually forced to pay $4.3 billion in settlements for violations of the Bank Secrecy Act and international sanctions, and Zhao stepped down from his role.
Binance has faced several such scandals in the past few years, including a lawsuit by the Securities and Exchange Commission (SEC) in June 2023.
User Experience and Trust
In the previous chapter, I already showed how Binance takes proactive measures to communicate with users and deal with security issues effectively – but what about regular, small-scale issues? How does the Binance customer support contribute to this picture, and are the users satisfied?
Customer Support
Nothing gives more of an impression of an exchange being legit and trustworthy than its customer support system. As it happens, it’s also one of the most common causes of complaints among users. How does Binance fare in this area?
For what it’s worth, the exchange’s FAQ and knowledge base page definitely deserves some applause. It has an entire section on security that covers not only all the relevant measures and features Binance has, but also has plenty of tips and advice on how to stay safe on this exchange. You’ll find articles like:
- How to Identify Phishing Emails?
- How to Spot and Avoid Crypto Scams?
- How to Report Stolen Funds Transferred to Binance?
And many more!
Binance’s support team can be reached through the 24/7 live chatbot, email, or social media channels. There’s also a self-service section where you can take matters into your own hands and solve some issues by yourself, such as:
- Reset your 2FA;
- Correct your name or birthday;
- Claim deceased relative’s assets;
- Appeal your KYC rejection.
This is a pretty neat feature that can save both users and the support team a lot of time!
User Feedback
What do the users themselves say when asked, “Is Binance safe?”
At first glance, the reviews don’t exactly paint a rosy picture. Binance has a 1.4 rating on TrustPilot – which might seem abysmal if it weren't for the fact that it has over 5,100 reviews in total, and the bulk of the negative reviews are 1-star reviews, many of which don’t offer any objective or useful insights. Many users do complain about unreliable deposits and withdrawals, however, and express concerns about the exchange's security.
According to the TrustPilot statistics, Binance has replied to 93% of negative reviews and typically responds within 24 hours, which definitely bodes well for the exchange’s trustworthiness.
It’s worth mentioning that Binance has a 4.4 rating on Capterra, and the mobile Binance app has a rating of 4.7 on Google Play – so, as you can see, the full picture looks much more balanced out!
Is Binance Safer Than Other Exchanges?
Let me emphasize once again – when it comes to the question of security, the answer is always going to be relative. With that in mind, there’s one final thing to get to the bottom of: how safe is Binance compared to other top exchanges?
After researching the best competitors, here’s how the Binance security stacks up against some of the other industry leaders: Kraken, Bybit, and Uphold:
Feature | Binance | Kraken | Uphold | Bybit |
|---|---|---|---|---|
2FA | ✓ | ✓ | ✓ | ✓ |
Cold Storage | ✓ | ✓ | ✓ | ✓ |
Withdrawal Whitelisting | ✓ | ✓ | ✓ | ✓ |
Internal Monitoring | ✓ AI-based anomaly detection and real-time transaction monitoring | ✓ Sophisticated anomaly detection and monitoring | ✓ Standard monitoring systems | ✓ Real-time monitoring, particularly during high traffic |
Reserve Transparency | ✓ Live reserve status ✓ Audit reports | ✓ Live reserve status ✓ Audit reports | ✓ Live reserve status ✗ No accessible audit reports | ✓ Live reserve status ✓ Audit reports |
Major Breaches | ✗ March 2018, May 2019, July 2019, November 2022 | ✗ June 2024 | ✓ - | ✗ February 2025 |
Fund Protection | ✓ SAFU | ✗ | ✗ | ✗ (Use of emergency loans and other measures to recover funds) |
Licensing & Regulation | ✓ 21 Countries | ✓ 14 Countries | ✓ FinCen (US), FCA (UK), FINTRAC (Canada), FCIS (Europe) | ✗ Not licensed in most countries it operates in |
KYC | ✓ (3 levels) | ✓ (2 levels) | ✓ (1 level) | ✓ (3 levels) |
Table: Binance, Kraken, Uphold, and Bybit comparison
|
|
|
|
|---|---|---|---|
| Beginners | Wide Range of Assets | Advanced Users & Beginners | |
| United States, Germany, United Kingdom, France, Canada, + 190 more | United States, Argentina, United Kingdom, Mexico, France, +180 more | Turkey, Argentina, Vietnam, Ukraine, + 180 more | |
| All Kraken Coupons | See All Coupons of Best Exchanges | See All Coupons of Best Exchanges | |
| One of the best crypto exchanges, especially in the US. | A reliable multi-asset exchange for trading crypto, fiat, and precious metals. | One of the leading crypto exchange platforms in the industry. | |
|
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Comparison: Binance, Kraken, and Uphold
All in all – not too shabby! Binance stands out with its dedicated user emergency fund and the sheer number of regional licenses it owns. On the other hand, it has a more prominent history of cyber attacks, but that’s to be expected of the most popular global exchange with a daily trading volume of over $7 billion!
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How to Use Binance Safely: Best Tips & Practices
If there’s anything you should take away from this guide, is that the security of a crypto exchange works at two ends: the user and the platform itself. I’ve already shown you all the ways the company keeps cyber attacks at bay. But is Binance safe for long-term use? That’s ultimately up to you!
In this section, I’ll teach you how to enable some of those account security tools I covered earlier and get the most out of Binance's safety net!
Complete KYC Verification
As I said, this is the number one first thing you should do after signing up on any centralized exchange – if anything, because the platform will keep bugging you until you finally cave in! Here’s a simple step-by-step guide on how to pass KYC verification on Binance:
Make sure the photo isn’t blurry and has no reflected light, otherwise it might be rejected!
This is it for basic verification! It might take some time to go through, but most people receive it immediately or within a few minutes. Once it’s over, you’ll see the first green checkmark on your profile. That’s one milestone down!
If you want higher withdrawal limits, you can pass further verification by uploading proof of address (this can be a bank statement or a utility bill with your name and address on it).
Enable 2FA
How about collecting a few more of those green checkmarks? 2FA is an obvious next choice. It will reinforce your login process with a second layer of protection. You'd be surprised how many unauthorized access attempts it can thwart for such a simple measure! Here’s how to do it:
All done! From now on, you’ll be able to easily log into your Binance account using the Google Authenticator app.
Enable Anti-Phishing Code
Anti-phishing code is another neat tool to add to your personal account security arsenal. I’ve already explained how it works in the first section of this article – so let’s get straight to action! Follow these steps:
That’s it! From now on, every time you receive an email from Binance, you’ll see the code you created here, and that's how you'll know for sure the email is legitimate.
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Get Binance Web3 Wallet
Every centralized crypto exchange comes with its own custodial hot wallet, and so does Binance, of course. But you don’t have to settle for the default option. If you want to take the security of your funds to the next level, self-custodial wallets are always a superior choice.
Choosing the best crypto wallet can be a bit of a headache – but luckily, Binance is way ahead of you there! This exchange has its own free self-custodial Web3 wallet built right into the mobile Binance app.
That way, you’ll not only have peace of mind knowing your crypto is as safe as it can be, but also get to dive into the world of DeFi and connect to numerous dApps, as well as buy, trade, or stake coins and tokens directly from the wallet.
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Conclusions
Time to wrap up and call the verdict – is Binance safe for both crypto beginners and pros? After examining this exchange’s security measures in and out, I have to say it definitely gets my confidence vote after all!
On top of being equipped with the standard package of 2FA, wallet whitelisting, anti-phishing protection, and advanced encryption, Binance knocks it out of the park with its Secure Asset Fund for Users, which has already proved an invaluable safety net. Even though the exchange has come under several hacking attempts since 2017, it’s handled them with admirable transparency and competence.
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The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.
Scientific References
1. Ikegwu C., Uzougbo N. S., Adewusi A. O.: 'Enhancing consumer protection in cryptocurrency transactions: Legal strategies and policy recommendations';
2. Morais E., Koens T., van Wijk C., Koren A.: 'A survey on zero knowledge range proofs and applications'.
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