Cryptocurrency investors have become more cautious about choosing their business partners due to the collapse of various platforms and concerns about regulatory crackdowns. These bankruptcies have trapped customer assets worth approximately $34 billion, prompting institutional investors to seek exchanges with stronger asset protection and implement new risk management measures. Altana Wealth’s Samed Bouaynaya states that investors are now more selective in choosing who to deal with. Binance.US and Coinbase Global are currently under scrutiny by the SEC, and Altana now prioritizes exchanges that allow settlement and custody with third-party custodians like Copper and Fireblocks. Anatoly Crachilov of Nickel Digital Asset Management reveals that most of their trading now occurs on exchanges that offer off-exchange settlement. The decline in exchange balances and increased demand for custody services suggest that users are moving their assets to safer solutions. Coinbase emphasizes their commitment to clients’ asset security through user agreements. Despite the risks, traders find it unavoidable to deal with Binance due to its dominant market share. CoinShares and Arca have also enhanced their due diligence measures and risk management strategies. Concerns persist within the crypto industry, with regulators identifying non-compliance among many crypto companies. The potential consequences of further exchange failures are of great concern, as they could lead to a major downturn in crypto markets. As a result, investors like Arca are breaking up trades and intensifying information requests to minimize exposure. Overall, the market remains wary and cautious in light of these challenges.
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Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
