Definition ∞ Fund segregation is the practice of keeping client assets separate from a financial institution’s operational funds. This measure protects client investments in the event of the institution’s insolvency or bankruptcy. In the digital asset space, it ensures that cryptocurrency exchanges or custodians cannot use client funds for their own purposes. This is a fundamental principle of financial security.
Context ∞ Discussions about fund segregation are particularly prominent in cryptocurrency news following exchange failures or regulatory reviews. Reports often highlight the importance of robust segregation policies for investor protection and market integrity. Understanding this concept is vital for assessing the security and trustworthiness of digital asset platforms and related regulatory developments.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
