SFOX, M.Y. Safra Bank partnering to bring FDIC protection to crypto traders

14 May, 2019
by David Borman
SFOX, M.Y. Safra Bank partnering to bring FDIC protection to crypto traders

It has been reported by Bloomberg that SFOX, a prime cryptocurrency dealer, and M.Y. Safra Bank are now partneriing to offer deposit accounts which are backed by the Federal Deposit Insurance Corp (FDIC). This will be the first time any deposit accounts linked to crypto trading have been supported by the same federal agency that backs banking customers worldwide.

Though it is true that most banks will not allow their customer's accounts to be linked to crypto trading, SFOX will only have FDIC insurance on the cash deposits in the accounts, not any crypto holdings.

Danny Kim, head of growth for SFOX, said in an interview that M.Y. Safra Bank sees “where digital currencies and crypto is going,” adding that it is a "part of the future.”

SFOX offers liquidity across ItBit, Gemini, Kraken and others, meaning users can access all of those markets without having to make individual accounts on each. This offers a very attractive position for those who see themselves as professional traders.

The article goes on to observe that if more platforms offered proper individual accounts, as opposed to pools of money, then issues like what recently happened at the Quadriga exchange could have been easier to resolve. Kim commented on this as well, noting:

"When the court is trying to retrieve the money, they don’t know whose funds are whose."

This is an exciting step forward for professional crypto traders, and with any luck other exchanges will begin to follow suite. Will it happen soon? Stick with Chepicap for all updates!

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