kaal:claim:4033886-031

Because digital asset exchanges perform both the traditional broker dealer function and the custody function, they face uncertainties and increased liability that traditional exchanges, which never touch custody, do not bear.

Source quote, verbatim

By having the crypto exchange perform the services of a traditional broker/dealer and custody holder, digital asset exchanges face uncertainties and increased liability that do not impact traditional exchanges.124

From

Wulf A. Kaal, Samuel Evans, Hayley Howe, Digital Asset Valuation (2022), IV.1 Market Pricing, p. 30
https://ssrn.com/abstract=4033886 · source PDF

Cite as

Wulf A. Kaal, Samuel Evans, Hayley Howe, Digital Asset Valuation (2022). SSRN: https://ssrn.com/abstract=4033886

Holds when

centralized digital asset exchanges holding customer assets

Classification

mechanismsupport: arguedfailure: combined custody and brokerage rolefamily: custody-and-key-lossdefilaw-and-legal-systems

Verify

The quote above is an exact substring of the source PDF, whose sha256 is 52ba05b1292b1be4bfaf1ee5cf56b14fea9c196d870603e794d7ee316df129bd. Extraction method: pdf-text-layer.
Attestation record: colloquium/attestations/9aa1e1324033e3f4...json
Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/4033886-031.md | sha256sum