Higher Cryptocurrency Trading Brings Increased Demand for Crypto Custodian Services
The Fusang Investment Office, an Asian asset management company is preparing to launch a crypto-custody service for high-net-worth and institutional clients as reported by the South China Morning Post. The service is to be named ‘Fusang Vault’ to accommodate the storage of large bitcoin transactions as well as other crypto.
The crypto custodian will be like a custodian bank in conventional finance - in the way that a third party is required to hold the cryptocurrency and audit them. Digital assets do not have registration of ownership attached to them making the security of the asset of high importance. When you sell bitcoin or cash out crypto, there is the immutable ledger that records the transactions, but no transfer of ownership.
More and more transactions are happening over the counter separate from exchanges as trading increases and financial institutions draw closer. The need for a custodian service within crypto is echoed as hedge funds and asset managers look towards investing in cryptocurrency.
Coinbase, a leading crypto-exchange, recently expanded into this market with ‘Coinbase Custody’, a service to designed to safeguard and control digital assets through support for multiple signers for fund transfers, setting withdrawal limits and providing audit trails.
There are still a lot of legal issues surrounding custodian services within crypto as Jolyon Ellwood-Russell, a partner at Simmons & Simmons, explained to the South China Morning Post: “Just having segregated accounts does not automatically mean that on an insolvency the investors assets will be protected or recoverable from a receiver or liquidator”. This suggests that that investors assets will still not be fully protected.
Make sure you visit BC Bitcoin to sell your crypto and for regular updates on the market.
Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards