Binance allows large traders to store assets at external financial institutions: Report | CoinDesk JAPAN

The Financial Times (FT) reported on January 30 that crypto exchange Binance will allow large traders to store their assets at independent banks. .

Previously, assets had to be held on an exchange or with a custody partner, Ceffu. Currently, you can also use crypto-friendly financial institutions like Swiss banks Sygnum and FlowBank.

This move comes amid concerns that Binance was fined $4.3 billion (approximately 645 billion yen, equivalent to 150 yen per dollar) in November 2023, and rival exchange FTX went bankrupt a year earlier. This may reflect users’ concerns about regulatory issues in the United States, which has increased.

FT quotes the head of a crypto asset management company as saying, “It’s much better to keep your money in a Swiss bank than with Binance.”

According to the FT, Binance said it had been exploring a three-way agreement between customers and custodians for nearly two years, but declined to comment on the names of the banks.

“Counterparty risk is an industry concern and is not unique to Binance,” Binance added.

Binance did not immediately respond to CoinDesk’s request for additional comment.

｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Image: Danny Nelson/CoinDesk
｜Original text: Binance Now Allows Larger Traders to Keep Their Assets Elsewhere: FT