Binance is the world’s largest exchange for cryptocurrencies, with a large trading volume. This exchange is available to American citizens and they can use a variety of payment methods. But there is one issue: new users must submit their social security number (SSN) to Binance when opening an account. In addition to SSN, they must provide valid government ID (driver’s license or passport). Is it safe to provide SSN information to Binance.US?
Let me say “NO” here, it is not safe to give any platform your SSN.
What is SSN?
Social Security number (SSN) is a numeric identifier assigned to US citizens. This identifier is used to track income and determine benefits. SSN is used to identify American citizens and individuals for tax reporting and tracking credit reports. It contains important information about American citizens. SSN is usually used to open bank accounts, obtain government benefits and more.
Should I give Binance US my SSN?
Given that the Binance.US claims that they do not store this information, giving SSN is not recommended. Also, most exchanges do not want full SSN and only ask for ID from the user.
Data Not Deleted
To clarify this, your data are not deleted if you deactivate your account. Since user data could be stolen in the event of a security breach, it is even more important to guard individual IDs jealously. This is one of the downsides that Binance.US has overlooked.
Is BinanceUS secure?
Despite the request for this information from users, there are insinuations that the exchange may not be secure. On May 7, 2019, Binance revealed that it had been caught in a widespread hack. 7000 bitcoins worth 40 million dollars was stolen.
Is Another Hack Possible?
Exchange security are usually top class but let’s not forget that it is a race against hackers. The latter also develop new tools to infiltrate platforms. So we cannot presume that Binance.US is 100% secure. If it is secure today, hackers may find a way to breach its security later on in the event of the slightest security flaw.
It is not safe to give your SSN to trading platforms. Given that this sensitive information is always at risk, you can think of alternatives. There are exchanges that do not demand complete SSN from their users. User privacy and security should always be paramount.