London Block Exchange Ltd (LBX) follows the Segregation Method to safeguard Client Funds.
Operating in what is currently an unregulated environment, we adhere to the relevant FCA guidelines and keep customer funds separate from all other funds. This separation occurs immediately on receiving the customer funds.
In addition to the separation of funds, the “segregation method” requires that customer funds are deposited into a bank account that is separate to LBX’s. To ensure it is clear which funds have been segregated and how, LBX will keep records of relevant funds segregated, relevant funds placed in an account with a credit institution, and assets placed in to a custody account.
If there is an insolvency event, any client funds held in fiat currency that have not as yet been exchanged into a cryptocurrency and subsequently withdrawn into a customers own private wallets will be protected from other creditors’ claims and will be available to be repaid to customers