INX Leads Digital Asset Industry on Client Asset Custody
While the SEC is charging crypto exchanges with defective client asset custody practices, at least one digital asset platform is implementing the best practices. We at Foley are proud to have been asked to advise INX on this initiative.
Foley & Lardner LLP advised The INX Digital Company, Inc. (INX), an SEC-registered FINRA member broker-dealer offering registered security tokens and a trading platform for digital assets, in its proactive self-regulatory measure to segregate customer funds.
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The action reinforces INX’s commitment to the highest standards of customer protection in the rapidly growing world of digital asset trading. While stringent regulations exist for the custody of customer assets in traditional markets, the digital asset landscape lacks standardized practices.
Recognizing the importance of customer protection, INX has taken proactive steps to address this gap by working with Foley lawyers specializing in digital assets, customer asset segregation rules and bankruptcy law. Though INX has been segregating customer assets for years, the firm has now put in place legal segregation of customer funds for the trading of digital assets, making them bankruptcy remote….
