Definition ∞ An asset segregation mandate requires that client funds and digital assets be held separately from a firm’s operational capital. This regulatory directive aims to protect customer holdings from the insolvency or mismanagement of the custodian. It ensures that even if a platform experiences financial distress, client assets remain insulated and accessible. Such separation is a fundamental principle for financial stability and consumer protection in the digital asset space.
Context ∞ The implementation and enforcement of robust asset segregation mandates remain a central point of discussion among global regulators and digital asset exchanges. Recent market events have underscored the critical need for transparent and verifiable proof of reserves and segregation practices. Future developments will likely focus on auditing mechanisms and legal frameworks to solidify these protections across various jurisdictions.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
