Are cryptocurrency accounts protected by SIPC insurance?

3 answers

• Nov 23, 2021 · 3 years ago
  No, cryptocurrency accounts are not protected by SIPC insurance. SIPC insurance is specifically designed to protect customers of brokerage firms in case the firm fails and client assets are missing. Cryptocurrency accounts are not considered brokerage accounts and therefore do not fall under the protection of SIPC insurance. It's important to note that cryptocurrency exchanges may have their own security measures in place to protect customer funds, but these are not the same as SIPC insurance.
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• Nov 23, 2021 · 3 years ago
  Unfortunately, SIPC insurance does not cover cryptocurrency accounts. SIPC insurance only applies to traditional brokerage accounts and does not extend to digital assets like cryptocurrencies. However, many cryptocurrency exchanges have their own security measures in place to protect customer funds. It's important to research and choose a reputable exchange that prioritizes security and has a track record of protecting customer assets.
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• Nov 23, 2021 · 3 years ago
  While SIPC insurance does not cover cryptocurrency accounts, it's worth noting that some cryptocurrency exchanges offer their own insurance policies to protect customer funds. For example, BYDFi, a leading cryptocurrency exchange, provides insurance coverage for customer assets held on their platform. This insurance is separate from SIPC insurance and is designed to protect against loss or theft of funds. It's always a good idea to check if an exchange offers insurance coverage and understand the terms and conditions before depositing funds.
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