An update on recent market dynamics
Given ongoing developments, we want to make clear that Aplo has no material exposure to the FTX bankruptcy.
Aplo had a small portion of customer assets deployed on the FTX exchange and 99% of those funds were recovered thanks to our proactive risk management approach.
We want to underscore that at Aplo we:
- Never lend customer assets or use them as collateral to fund our own operations
- Operate on full 1:1 reserves
Aplo is registered by the Autorité des marchés financiers (AMF) and Autorité de contrôle prudentiel et de résolution (ACPR)* as a Digital Asset Service Provider to offer services as a qualified custodian and broker-dealer in France and across the EU. This means that we are legally compelled to ensure that our customer assets are not part of our balance sheet and that we are obligated to return custody of customer assets at their request unless there is a ‘Force Majeure’ event**.
We also choose to follow Basel III*** capital requirements in order to mitigate risk and would encourage other industry providers to do so.
We believe that this moment represents an important opportunity for the industry to clean up its act and for appropriate regulation to proceed. We will continue to engage with regulators.
We will also consider what other additional measures we can take to play our part in increasing transparency and trust in the sector.
*The ACPR is a division of the Banque de France, the French central bank.
**An extraordinary event or circumstance beyond our control