Binance has completed the conversion of its Secure Asset Fund for Users (SAFU) to Circle’s USD Coin (USDC) stablecoin, according to on-chain facts.
On an April 18th rack, Binance confirmed that 100% of SAFU’s assets have been transferred to the USDC stablecoin. According to the company, “using a trusted, audited and transparent stablecoin for SAFU further increases its reliability and ensures it remains stable at $1 billion.”
USDC is the second largest stablecoin by market capitalization and is praised by some for its transparency. It has also devoted resources to adapting to a compliance-first approach globally.
Following this announcement, Binance deposited 16,277 BTC (approximately $1 billion) and 1.36 million BNB (worth almost $749 million) into its hot wallet before withdrawing $1 billion USDC into the SAFU fund wallet.
Launched in 2018, SAFU is an emergency insurance fund that protects users against extreme situations such as stock market hacks and provides possible reimbursement for unforeseen losses.
Regulatory developments
Meanwhile, Binance has also made significant progress on the regulatory front, especially in India and Dubai.
Binance has done that in India Reportedly agreed to a $2 million fine and plans to reinstate its presence after a ban was imposed earlier this year. This fine is part of the commitment to register with the Financial Intelligence Unit, which oversees Virtual Asset Service Providers (VASPs). It should also comply with local tax frameworks and the Prevention of Money Laundering Act (PMLA).
Meanwhile, Binance CEO Richard Teng said in Dubai revealed that the exchange has secured its Virtual Asset Service Provider (VASP) license. This achievement notably followed co-founder Changpeng Zhao’s decision to relinquish his voting rights within the exchange’s local entity.
These regulatory improvements reflect Binance’s priority on compliance, especially in the wake of legal challenges with US authorities. Last year, Binance settled federal charges worth $4.3 billion, arising from deficiencies in anti-money laundering (AML) protocols and violations of the Bank Secrecy Act.
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