Client Funds
Client assets handling for XBTFX (SC) Ltd.
- Your assets are held in segregated client bank accounts at regulated banks. XBTFX (SC) Ltd. primary banking partner is ABSA Bank (former Barclays).
- We work with regulated entities. Our counterparties are regulated in multiple jurisdictions — Cyprus, Estonia, Mauritius and more. Our wallet infrastructure is provided by a regulated Business-to-Business provider in Estonia that complies with EU standards of security and AML policies.
- Regulated by the Financial Services Authority in Seychelles with License No. SD169.
- Your money and assets are ring-fenced from creditors in the unlikely event that XBTFX (SC) Ltd. goes into liquidation.
What does XBTFX do with my assets?
XBTFX (SC) Ltd. is required by regulation to separate client funds and assets from its own resources. This means we aren't allowed to use client funds in the course of business activities and they are ring-fenced and protected in the unlikely event of XBTFX (SC) Ltd. becoming insolvent.
XBTFX (SC) Ltd. is an authorized Securities Dealer by the Financial Services Authority of Seychelles. As a regulated company we are under constant monitoring and are required to submit annual audits and quarterly regulatory reports.
We work with a regulated liquidity provider holding licenses in Cyprus, Mauritius and Vanuatu. We segregate customer funds and company funds by using separate cold wallets for either.
What happens to the money I deposit with XBTFX?
Your money is held in segregated bank accounts. This ensures that the cash remains yours, rather than XBTFX's. It also means that it's easily identifiable as client money, so XBTFX and its creditors don't have any charge, lien, or right of set-off or retention over it.
We have partnered with ABSA (former Barclays) for our segregated bank accounts. ABSA is one of the most credit-worthy high street banks in the Africa region, and we are constantly expanding our partnerships.
What happens to my money if XBTFX goes into liquidation?
As all deposits lodged with us are held in trust for you in a regulated trust account, in such circumstances those deposits would attract all legal protections afforded to trust money.
Net unreleased running profits are also held in trust by us and would normally be similarly protected for your benefit as beneficial owner.
Client assets handling for XBTFX LLC
- Your assets are held primarily in cold storage and with a segregated liquidity account at our liquidity provider. We keep no more than 15% of our assets in hot wallets.
- We work with regulated entities. Our counterparties are regulated in multiple jurisdictions — Cyprus, Estonia, Mauritius and more. Our wallet infrastructure is provided by a regulated Business-to-Business provider in Estonia that complies with EU standards of security and AML policies.
- We keep separate cold wallets for company funds and client funds.
- XBTFX doesn't have any debt, and in the unlikely event of liquidation, client funds should be first in line — after expenses to counterparties — to be recovered.
What does XBTFX do with my assets?
Our first priority is to protect client assets from hackers and criminals who increasingly target blockchain companies. We do this by keeping a very moderate amount of funds in our hot wallets — provided by a regulated provider in Estonia.
We work with a regulated liquidity provider holding licenses in Cyprus, Mauritius and Vanuatu. We segregate customer funds and company funds by using separate cold wallets for either.
We run weekly reconciliation reports and adjust the wallets accordingly.
What happens to the money I deposit with XBTFX?
Each client has separate deposit addresses that work with smart contracts. Upon blockchain confirmation, the funds are credited in our system. Smart contracts then move the money to the company's hot wallet — a principle employed by most exchanges. From there we move some part of client money to separate cold wallets to ensure not too many funds are exposed in the hot wallets.
Depending on the ratio of funds available in hot and cold wallets, some funds might not be moved to cold wallets. We strive to keep no more than 15% of our funds in hot wallets. The funds we keep in hot wallets are there to ensure a smooth withdrawal process for clients while safeguarding overall client fund safety.
What happens to my money if XBTFX goes into liquidation?
XBTFX doesn't have any debt; the only creditors it might have are providers due to receive money for services provided. In the unlikely event of liquidation, clients will receive the remaining funds. Funds in cold storage will immediately be restored to clients after the relevant legal process is completed. If you are categorised as a retail client, any money we hold on your behalf will be kept in one or more segregated wallets. The Client Funds will be pooled with funds belonging to other Clients (the 'Omnibus Account'), and claims will be made against the Omnibus Account.
