Binance Enables VIP Clients to Safeguard Assets on Third-Party Platform MirrorX

On August 28, 2023, the world's largest cryptocurrency exchange by trading volume, Binance, introduced MirrorX, a new cryptocurrency custody solution aimed at providing a more secure storage option for digital assets, specifically tailored for Binance VIP clients and businesses.

Binance Offers VIP Clients Asset Custody on Third-Party Platform MirrorX. Image: Binance

What is MirrorX?

MirrorX allows Binance VIP clients to securely store digital assets on a third-party platform called Ceffu, without needing to move their assets out of the Ceffu custody platform. User assets held within Ceffu are instantly reflected into a "Sub-account" on Binance at a 1:1 ratio.

Assets "mirrored" from Ceffu to Binance are locked in an aggregate account on Ceffu and authorized for a "3rd-Party Custodian Sub-account" on Binance (managed by Ceffu custody).

Ceffu Operations on Binance. Image: Binance

Through this setup, clients can use these assets to access most existing products within the Binance ecosystem, including Spot, Margin, and Futures trading.

The product aims to provide an additional layer of security for Binance VIP clients and businesses, ensuring their assets are segregated and independently safeguarded when using Ceffu's MirrorX.

Requirements for Using MirrorX:

Binance VIP clients and businesses must open an account with Ceffu and complete KYB verification processes to start using the service.
Clients with existing accounts at Ceffu will need to create a new "Sub-account" on Binance, referred to as "3rd-Party Custodian," to receive their authorized assets and use them exclusively for MirrorX.
Currently, Ceffu only accepts registration applications from corporate clients.
Benefits of MirrorX for Clients:

Instant asset transactions

Any requests related to digital assets from Ceffu to Binance are immediately recorded through the client's "3rd-Party Custodian Sub-account" on Binance, ensuring seamless and real-time asset management.

Fully automated transaction processing

All MirrorX positions are automatically processed outside the exchange platform free of charge on a T + 1 basis. Any outbound transfers from the "3rd-Party Custodian Sub-account" are automatically initiated for processing.

Authorized asset withdrawal rights

Clients can withdraw all or part of their mirrored assets from their Binance account by:

Transferring assets from the "3rd-Party Custodian Sub-account" to their "Main Account";
Or, directly transferring from Ceffu - by revoking registered authorizations for mirroring on Binance.
Risk reduction

MirrorX enables VIP clients and businesses to minimize asset risks while continuing to utilize Binance's platform with superior liquidity capabilities.

Catherine Chen, Head of Binance's VIP & Business Division, commented:

"Through our partnership with Ceffu, we enhance an additional risk management layer, allowing clients to diversify risk mitigation capabilities while maintaining access to liquidity trading solutions on Binance. This positions Binance at the forefront of digitizing the digital asset ecosystem."

Binance's Legal Separation Efforts

This latest move by Binance, the leading cryptocurrency exchange, can be seen as an attempt to separate itself from legal responsibilities, just three days after rumors circulated that the exchange had provided liquidity-enhancing suggestions for low-cap projects.

Currently, Binance remains embroiled in a protracted legal battle with the US government, accused of operating without proper registration in the United States. CEO Changpeng Zhao even considered suspending operations of its US branch in response to regulatory pressures. Additionally, the US Department of Justice is reportedly investigating Binance for potential violations of sanctions laws since May.

Earlier this week, two of the world's largest credit institutions, Mastercard and Visa, announced the termination of their partnerships with Binance.

Binance has also faced allegations of aiding Russians in circumventing Western sanctions to transfer funds abroad, prompting Binance to announce the suspension of its P2P services in these regions.