Definition ∞ A safeguarding requirement mandates that financial institutions protect client funds and assets by holding them separately from the firm’s own operating capital. This ensures that client assets are secure even if the institution faces insolvency. It is a regulatory measure designed to protect consumers and maintain financial market stability. Compliance with safeguarding requirements is a fundamental aspect of trust in financial services.
Context ∞ Safeguarding requirements are a critical topic in news concerning regulated digital asset service providers, such as crypto exchanges and stablecoin issuers. A key discussion involves adapting traditional safeguarding principles to the unique characteristics of digital assets, including cryptographic custody. Observing evolving regulatory guidelines for the protection of digital client funds provides essential context for market security.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
