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What Is the Regulatory Pressure on CEXs regarding the Security of Deposited Funds?

Regulators pressure CEXs to implement robust security (confirmation policies, cold storage) and capital reserves to protect consumer funds and market integrity.
Greeks.Live19.11.25

What Is the Regulatory Pressure on CEXs regarding the Security of Deposited Funds?

Regulatory pressure on CEXs regarding the security of deposited funds is increasing globally. Regulators are demanding that CEXs implement robust security measures, including adequate confirmation policies, secure cold storage practices, and sufficient capital reserves to cover potential losses from hacks or attacks like double-spends.

The goal is to protect consumer assets and maintain market integrity. Failure to comply can result in heavy fines, operating restrictions, or the loss of their operating license.

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