Cboe Digital Writes A Letter To Users After The Fall Of FTX
As concerns about the FTX liquidity shortage grow, Cboe Digital today sent a letter to customers assuring them regarding asset safety.
Cboe Digital, a U.S.-regulated cryptocurrency exchange and clearinghouse, attempted to increase its share in the cryptocurrency company on Wednesday as it fought to avoid bankruptcy.
The company’s president John Palmer wrote:
“To protect member funds and assets, Cboe Digital is obligated to completely segregate customer assets from our own assets by holding them at a bank in a specially-designated account, for the benefit of our Members, and separate from the operating funds of Cboe Digital.
This is required by CFTC regulations for futures trading and clearing, and state requirements related to Money Service Business (MSB) licenses. Cboe Digital has strict policies in place to ensure our customer funds are segregated and safe.”
What FTX has requested permission to conduct from the Commodity Futures Trading Commission (CFTC) is directly related to the remark concerning middlemen. FTX US Derivatives is requesting permission to drop a concept that the business has largely characterized as risky.
In the letter, Cboe also addressed a number of potential hazards associated with unregulated markets, including counterparty risk and customer asset protection.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
CoinCu News
Author
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Cboe Digital Writes A Letter To Users After The Fall Of FTX
As concerns about the FTX liquidity shortage grow, Cboe Digital today sent a letter to customers assuring them regarding asset safety.
Cboe Digital, a U.S.-regulated cryptocurrency exchange and clearinghouse, attempted to increase its share in the cryptocurrency company on Wednesday as it fought to avoid bankruptcy.
The company’s president John Palmer wrote:
“To protect member funds and assets, Cboe Digital is obligated to completely segregate customer assets from our own assets by holding them at a bank in a specially-designated account, for the benefit of our Members, and separate from the operating funds of Cboe Digital.
This is required by CFTC regulations for futures trading and clearing, and state requirements related to Money Service Business (MSB) licenses. Cboe Digital has strict policies in place to ensure our customer funds are segregated and safe.”
What FTX has requested permission to conduct from the Commodity Futures Trading Commission (CFTC) is directly related to the remark concerning middlemen. FTX US Derivatives is requesting permission to drop a concept that the business has largely characterized as risky.
In the letter, Cboe also addressed a number of potential hazards associated with unregulated markets, including counterparty risk and customer asset protection.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
CoinCu News
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