Binance Expands YubiKey Support for Two-Factor Authentication (2FA)

Siamak Masnavi

Binance announced on Monday (July 22) expanded support for two-factor authentication (2FA) via Yubico's "Yubikey" hardware-based security keys.

A YubiKey security key can be purchased from Yubico for as little as $20 (in the case of their "Security Key by Yubico" product):

Yubico Security Key.jpg

A few days after Binance announced that it had suffered a security breach on May, Binance CEO Changpeng Zhao (aka "CZ") said via a "Security Incident Update" published on Binance's blog that the Binance team was "making significant changes to the API, 2FA, and withdrawal validation areas", and as a result, it would be improving Binance's two-factor authentication (2FA) by implementing  support for hardware-based security keys such as Yubico's YubiKey devices, and that in fact, Binance would be giving away "1,000 YubiKeys as soon as that feature is implemented."

Then, on June 27, CZ sent out a tweet that told Binance users that YubiKey support had been implemented and it was in the beta testing stage. He also explained that Binance was at that time only using a YubiKey device (for those customers that had set one up for their accounts) for verifying withdrawals:

On the same day, a Binance support article explained how users could use a YubiKey device for 2FA.

The next day, a Binance blog post announced that Binance had added support for two-factor authentication (2FA) through hardware security keys," and that this was " in addition to the SMS and Google Authenticator options supported on the website and apps."

Furthermore, this post explained that the "Binance website, both on desktop/laptop and mobile, now supports the FIDO2 open authentication standard," which means that "2FA devices that support this standard, like YubiKey, Trezor, and others, can be used as security keys" for Binance accounts. It also said that Binance's mobile apps would be adding this feature in the future.

Earlier today, Binance sent out a tweet to notify users that they can now use 2FA via security keys for "Withdraw & API", "Log In", and "Password Reset"); Binance also, once again, recommended using a YubiKey device as a security key:


Featured Image Courtesy of Binance. YubiKey Device Image Courtesy of Yubico.

$8.5 Billion: Coinbase's Bitcoin Holdings Could Surpass 1 Million BTC Next Month Report

San Francisc-based cryptocurrency exchange Coinbase could soon hold over 1 million bitcoin on its cold wallets, showing bitcoiners are still storing funds on trading platforms en masse.

According to a report published by data source Longhash, Coinbase’s cold wallets contained roughly 970,000 BTC, worth about $8 million, at the beginning of this year. A graph shared with Longhash’s readers shows that the exchange’s bitcoin holdings have been growing steadily.

Coinbase's BTC wallet holdingsSource: Longhash

In comparison, the bitcoin holdings of other cryptocurrency exchanges’ bitcoin holdings haven’t grown exponentially last year, with no other trading platform having over 250,000 BTC in cold storage.

Coinbase is estimated to have over 30 million registered users, and if Longhash’s data is correct it’s also the cryptocurrency trading platform with the largest bitcoin holdings. It has managed to keep on gaining exposure over the years, even launching a trading app for its Coinbase Pro platform late last year.

While in September 2019 data from CryptoCompare’s Exchange Review showed that both Coinbase and Binance were seeing a massive surge in web traffic, the BTC holdings Binance had in cold storage remained relatively flat, while those of Coinbase kept surging.

Longhash points out that Coinbase has been serving institutional investors with its services, offering offering support for Maker contract voting and XTZ baking on its Coinbase Custody platform.

Coinbase’s apparent dominance and steady growth may be because it attracts a large share of long-term/institutional investors, who are less concerned with short term price swings.

Coinbase Custody, it’s worth noting, is estimated to have had $1 billion in assets under management 12 months after launching. As CryptoGlobe reported, Bitfinex recently moved $1.1 billion worth of bitcoin for an $80 fee, presumably while managing its cold storage wallets.

Featured image via Unsplash.