Binance is making efforts to reduce counterparty risk and improve safety.
The headache of dealing with inherent risks, particularly counterparty risk, in the crypto industry has intensified since the collapse of the FTX exchange.
When traders encounter counterparties who do not deliver the agreed-upon assets or funds or fail to fulfill their obligations, traders can face significant losses.
A Solution to Mitigate Counterparty Risk
To address this issue, Binance is considering allowing select professional customers to store their collateral funds in banks, as reported by Bloomberg.
By adopting this proactive approach, there is potential for a substantial reduction in counterparty risk, consequently augmenting the overall safety of cryptocurrency trading as other changes may follow suit.
Sooner or later, the leading crypto exchange will emerge as a frontrunner in addressing counterparty risk. Binance is reportedly considering working with…
