Binance has accomplished the conversion of its Safe Asset Fund for Customers (SAFU) into Circle’s USD Coin (USDC) stablecoin, in accordance with on-chain knowledge.
In an April 18 assertion, Binance confirmed transferring 100% of SAFU’s property to the USDC stablecoin. In response to the agency, its “use of a trusted, audited, and clear stablecoin for SAFU additional enhances its reliability and ensures it stays steady at $1 billion.”
USDC is the second-largest stablecoin by market capitalization and is hailed by some for its transparency. It has additionally spent sources aligning itself with a compliance-first strategy around the globe.
Following this announcement, Binance deposited 16,277 BTC (roughly $1 billion) and 1.36M BNB (valued at almost $749 million) into its scorching pockets earlier than withdrawing $1 billion USDC to the SAFU fund pockets.
Launched in 2018, SAFU is an emergency insurance coverage fund that safeguards customers in opposition to excessive conditions like alternate hacks and ensures potential reimbursement for unexpected losses.
Regulatory developments
In the meantime, Binance has additionally made important strides in its regulatory affairs, significantly in India and Dubai.
In India, Binance has reportedly agreed to a $2 million advantageous and plans to reestablish its presence after going through a ban earlier this yr. This advantageous accompanies its dedication to register with the Monetary Intelligence Unit, which oversees Digital Asset Service Suppliers (VASPs). It might even be required to adjust to native taxation frameworks and the Prevention of Cash Laundering Act (PMLA).
In the meantime, in Dubai, Binance’s CEO, Richard Teng, disclosed that the alternate has secured its Digital Asset Service Supplier (VASP) license. Notably, this accomplishment adopted co-founder Changpeng Zhao‘s choice to relinquish his voting energy inside the alternate’s native entity.
These regulatory developments replicate Binance’s prioritization of compliance, significantly within the aftermath of authorized challenges with US authorities. Final yr, Binance settled federal costs amounting to $4.3 billion, stemming from deficiencies in its anti-money laundering (AML) protocols and violation of the Financial institution Secrecy Act.
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