Cryptoasset prime dealer and trading platform SFOX revealed that they have partnered with the New York-based M.Y. Safra Bank to offer its trader with deposit accounts insured by Federal Deposit Insurance Corp. This according to a Bloomberg report published May 14, 2019.
First Ever for Crypto Investors
Given the magnitude of frauds and mishaps in the crypto industry, such as the recent death of QuadrigaCX’s co-founder that left almost $193 million frozen, crypto traders need to have insured accounts linked to crypto exchanges more than anyone else.
SFOX’s partnership with the M.Y. Safra Bank to provide FDIC protection to crypto traders is promised as the first-ever initiative to protect cryptoasset traders through insured deposit accounts. Federal Deposit Insurance Corp. is a federal agency that is known for protecting bank customers against $250,000 per financial institution.
This comes as a great achievement as many banks have prohibited their customers to link their bank accounts with crypto trading platforms. The fact that approved SFOX users can now opt for M.Y. Safra bank account protected with FDIC makes trading more secure and bridges the gap between users’ fiat and crypto terminals.
SFOX trading platform helps traders trade cryptos listed on multiple crypto exchanges such as Kraken, ItBit and Gemini from a single portal, hence freeing them of the hassle to create multiple trading accounts. SFOX CEO Akbar Thobhani said that their partnership with M.Y. Safra bank is a reflection of their focus towards providing traders with the easiest and safest place to trade cryptoassets.
M.Y. Safra Bank CEO Jacob M. Safra noted:
“M.Y. Safra Bank’s partnership with SFOX underscores our commitment to spearheading the best solutions within the newest domains of finance.”
Why It Matters?
The case of the largest Canadian crypto exchange QuadrigaCX is still fresh in everyone’s mind. It wasn’t a regular hack or fraud, but a sheer case of misfortune, as reports suggest. The CEO and co-founder of the company faced a sudden demise, leaving an upwards of $190 million of 115,000 users’ funds frozen.
If users have personal bank accounts linked to crypto exchanges where they can store their funds rather than relying on the accounts of exchanges, it can protect them against such incidents where the loss of access to one account leads to such severe damage.