Regulatory Alerts2024-09-25 | 83126Digital Asset Protection Foundation to be Set Up to Ensure Safe Return of User Funds from Closed Down VASPs
The Financial Services Commission will authorize the Digital Asset Exchange Association's plan to establish a nonprofit Digital Asset Protection Foundation to safeguard user funds from insolvent virtual asset service providers. This foundation will receive and securely manage assets transferred from closed exchanges, utilizing bank custody for cash and a designated exchange for virtual assets, while an operating committee ensures professional oversight. Authorities plan to facilitate consultations starting in October to transfer assets from the ten terminated and three suspended operators, aiming to streamline returns and stabilize the market.
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