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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 Writes A Letter To Users After The Fall Of FTX 3

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.

Cboe Digital Writes A Letter To Users After The Fall Of FTX 4

In the letter, Cboe also addressed a number of potential hazards associated with unregulated markets, including counterparty risk and customer asset protection.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

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