I don't see how separating business funds and customers assets will happen or how it will be implemented because this means that there are third-party services or applications that take customers’ money and leave the fees to the platform, or will the platform pay an amount as a guarantee because the platform’s failure to use customers’ funds makes their resources scarce, as some of them work like a bank, investing customers’ money in low-risk investments, .
This is the thing, they will be banned from!
Japan has already been doing this for years and this is a reason why FTX Japan users still have their money!
There is a bit of nuance here
- you deposit your money in a bank but you expect interest, how would that work if the bank is not allowed to touch your money
- you deposit coins on an exchange knowing that you can withdraw them at any time but you don't demand interest and they get fees from you
- you deposit coins for 100% APY then you know those coins are going to be lend
What those laws require is that unless the user specifically allows you to play with his money you must keep every deposit safe and untouched.
Rather than a bank, think of it like your stock broker, imagine you call him to liquidate some AAPL shares and he tells you everything is in SBNY (signature bank).
we all know that as per CZ they are SAFU.
Yeah right!