Binance, a global crypto exchange and blockchain ecosystem provider, has announced a new program that would provide security for its users through vetted security audits. Caught up in current regulatory quagmires, the program comes as a strategically necessary move from the exchange to acquire better regulatory status.
Coined as ‘Project Shield’, the new program will operate as a layer of user protection, with implementation from its partners, CertiK and PeckShield. CertiK is a formal verification service platform based on machine-checking and deep specification technologies. PeckShield, the second partner in the program, is a blockchain security firm.
“Securing our platform is one of our key priorities. Project Shield will enhance our existing capabilities by leveraging industry partners to strengthen our defenses and protect the Binance ecosystem.” shared Tigran Gambaryan, VP of Global Intelligence and Investigations at Binance.
The launch of “Project Shield” follows other initiatives by Binance that aims to bolster security both on its end-user platform and its internal systems, given the prevalence of crypto exchange hacks over the past few years. Binance itself was once the target of a $40 million hack back in 2019. The news follows Binance’s recent withdrawal from its license application with the Monetary Authority of Singapore (MAS), in which the exchange said it would instead refocus its strategies to other important matters, such as security.
Project Shield, a new #Binance initiative, is the first-ever audit program reviewing tokens listed on crypto exchanges.
Binance will support projects to improve any vulnerabilities that may arise from an audit, adding a new layer of user protection.https://t.co/4W3zUXa7ax
— Binance (@binance) December 14, 2021
Binance currently has two related programs in place: the Bulletproof Exchanger Project, which helped it detect unusual activity on its platform early, averting the loss of $42 million worth of tokens; and Secure Asset Fund for Users (SAFU), which is built to secure user funds in extreme cases by providing Two-Factor Authentication (2FA), hardware-level security mapping, as well as regularly updated project whitelisting.
Binance Founder and CEO Changpeng Zhao commented on the launch’s prospects:
“With the increased interest in the market and the profitability of crypto investments, the number of people ‘apeing’ has increased. Investing without proper knowledge and enough research is risky, but through Project Shield, we believe that Binance can be one of the first hurdles that projects have to overcome before they approach users. Furthermore, with the increased standards of security for projects, we believe that the industry will get healthier, which will allow for greater mass adoption in the near future.”
The collaboration between Binance, CertiK, and PeckShield will operate with reviews of project tokens that are listed on Binance’s centralized exchange, alongside projects and protocols listed under its Innovation Zone program. According to Binance, approximately 150 project tokens will undergo audit within the year.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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