Binance works with BBVA, one of Spain’s largest banks, as the independent custodian of client funds.
move It is said that Aim to restore confidence in centralized cryptocurrency investments, such as FTX crashes and Binance’s own supervision troubles.
FT reports that Binance users can now custody assets with BBVA, thus providing enhanced security through bank-backed collateral. Binance also works with Sygnum and Flowbank in Switzerland as independent custodians.
According to the NPC, Binance’s move may help bridge the gap between institutional investors and the crypto ecosystem as traditional finance offers safer, more regulated storage solutions.
Binance’s custody of BBVA involves client funds held in Spanish banks, sources at the Bank of England said. Binance then accepts these assets as profits for trading on its platform, reducing opponent risk.
Cointelegraph contacted Binance to confirm its partnership with BBVA. Binance acknowledged receiving the request, but did not provide any other details through the publication.
Continue to access customer funds
Sources told FT that Binance only worked with a few banks to independently monitor client funds, but added that BBVA has better “name recognition” than other bank partners and adds a layer of trust.
Thursday, second-hand emission A service to support cryptocurrency conversion to Fiat and withdraw directly from European users’ Mastercards with near real-time availability. The move is intended to simplify the deviation of funds from European Economic Areas (EEA) and UK users.
Related: Binance ends Tether USDT deal in Europe to comply with mica rules
Binance Crypto investors rely solely on exchange asset storage before they acquire bank custodians. The entrusted custody of reliable banks adds a layer of protection to user funds.
For example, The crash of FTX exchange in 2022 Blocking many clients from accessing their funds has created enormous financial pressure and increased regulatory scrutiny in the crypto ecosystem. FTX locks in $175 million worth of investment From Genesis deal only.
Wazirx continues to take customer funds hostage
Investors feared that it has recently renewed on Indian cryptocurrency exchange Wazirx Once had a strong connection with Binancefreeze withdrawals for its 16 million users Follow major security breaches.
When Wazirx tried to claim losses, the latter was far away from the Indian Exchange, saying:
“Their (Wazirx) attempt to transfer responsibility is a disappointing deflection strategy, but it should not distract anyone from the obvious problem to be addressed here: The needs of the Wazirx team require responsibility for user funds lost at their management.”
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