Which digital currency exchanges are covered by the SIPC?

3 answers

• Dec 26, 2021 · 3 years ago
  Certainly! The SIPC, or Securities Investor Protection Corporation, is a non-profit organization that provides limited protection to customers of failed brokerage firms. However, it's important to note that the SIPC does not cover digital currency exchanges. The SIPC was created to protect investors in traditional securities, such as stocks and bonds, and does not extend its coverage to digital assets like cryptocurrencies. Therefore, it's crucial to do your own research and due diligence when choosing a digital currency exchange.
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• Dec 26, 2021 · 3 years ago
  Unfortunately, the SIPC does not cover digital currency exchanges. The SIPC's mission is to protect investors in traditional securities, and it does not extend its coverage to digital assets like cryptocurrencies. This means that if a digital currency exchange were to fail or experience a security breach, the SIPC would not provide any protection or reimbursement for your funds. It's important to choose a reputable and secure exchange that has its own measures in place to protect your investments.
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• Dec 26, 2021 · 3 years ago
  While the SIPC does not cover digital currency exchanges, there are other measures in place to protect investors in the cryptocurrency space. For example, some exchanges have insurance policies that cover the loss of funds due to hacking or other security breaches. Additionally, certain exchanges may offer their own protection programs or funds to reimburse customers in case of a breach. It's important to research and understand the specific protections offered by each exchange before making a decision. One such exchange that offers its own protection program is BYDFi, which has implemented measures to safeguard customer funds in the event of a security incident.
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