Binance Exchange Suspends Trading – SAFU Initiated (2024)

FAQs

Is Binance in trouble now? ›

New Delhi: Binance, the world's largest cryptocurrency exchange, received a notice on Wednesday from India's Financial Intelligence Unit (FIU-IND), which fined it $2.25 million ( ₹18.8 crore) for operating without complying with domestic anti-money-laundering regulations before December 2023.

Binance has a notorious reputation for allowing actors to use its exchange for various money laundering schemes, terrorist financing, and other illicit activities. Exchanges must enforce strong KYC and AML measures to deter money laundering, terrorist financing, and illicit activities.

Violations of Binance's terms, including trading rules, can also lead to suspension, as can legal or regulatory requirements such as anti-money laundering laws. Inactivity over an extended period or issues with withdrawals and deposits, such as incorrect information or failed transactions, may also prompt a suspension.

The acronym 'SAFU' refers to Secure Asset Fund for Users”. This is an emergency reserve held to protect investor assets on the Binance crypto exchange. The money from the fund is used to pay back investors who lose their assets due to a hack or any other event in an exchange that leads to the loss of user assets.

Is Binance Exchange Safe? Binance is often considered one of the safest exchanges in the world if you consider the level of security. If the exchange crashed or a hacker stole assets or funds, the SAFU reimburses its users from the $1 billion fund. Not every platform has an insurance fund in place.

If a crypto exchange declares bankruptcy, accounts will likely be frozen for a time. If you have crypto or funds at an exchange that declares bankruptcy, you'll need to file a claim and wait for the process to complete. Claims filed at a bankrupt exchange are paid out in order of creditor priority.

On November 21, 2023, a US judge convicted Binance on multiple charges—including violations of the Bank Secrecy Act, money laundering schemes, unlicensed money transmitting, and sanctions violations.

Key Binance executives who have been helping the world's biggest cryptocurrency exchange navigate a widening regulatory crisis, including US allegations of fraud, are leaving the company along with many of its US employees, according to people familiar with the matter.

User reports indicate no current problems at Binance.

These reasons are not exhaustive and there are always special exceptions that our team takes into account when evaluating these accounts, but they represent the most common cases. If our system detects that your account may have been compromised, we will temporarily lock your account to ensure your funds are safe.

Why is my trading disabled on Binance? ›

When you see the "Trading is disabled on this account" message, usually this is an issue where the Binance Leveraged Tokens, known as UP or DOWN pairs, have not been enabled for trading in your Binance account settings on Binance.com.

Occasionally, we may need to lock your account if you have made recent changes to it. For example, if you have reached out to our team to reset your two-factor authentication, or you have changed your password, we will temporarily disable your ability to withdraw.

The CFTC brought civil proceedings against Binance in March 2023 for failing to put in place an anti-money laundering program that would have identified and stopped dirty money transactions such as the financing of terrorism and illicit drug sales.

The SAFU was intended to insure against potential breaches, with the funds reserved to help compensate users in the event of a loss stemming from a breach. Assets for the funds comprise four cryptocurrencies: BTC (Bitcoin Wallet) BNB & BSC-USD (BNB Smart Chain wallet)

In crypto, the term “SAFU” denotes that funds or assets are safe. Among crypto communities, you can use the term “SAFU” interchangeably with “Safe”. “SAFU” is usually used among a project's promoters or team to assure investors that their investment will be safe.

“Binance became the world's largest cryptocurrency exchange in part because of the crimes it committed – now it is paying one of the largest corporate penalties in U.S. history,” said Attorney General Merrick B. Garland.

What does Binance.US being a crypto-to-crypto exchange mean? On June 13, 2023, Binance.US began its transition to a crypto-only exchange, which means we no longer accept USD deposits and withdrawals for the time being — until we are able to secure stable banking partners.

Based on current analysis and forecasts, BNB could see a rise in the coming years. As Binance continues to grow and global adoption of the coin increases, the price of BNB could rise. As the reliability and potential uses of BNB increase in the future, interest and demand for the coin is likely to continue.