As crypto-assets become increasing widespread, the issue of their safe custody is also growing in importance. In the latest edition of its consumer information series “Let’s talk about money” (“Reden wir über Geld”), the FMA explains about the possible options that exist for the custody of crypto-assets and their respective advantages and disadvantages.
A uniform legal framework for crypto-asset service providers (CASPs) has existed following the entry into force of the European Markets in Crypto-Assets Regulation (MiCAR). The Regulation has created clear requirements throughout Europe for entities that offer inter alia services for the custody and management of crypto-assets for clients.
In light of this, the current edition of “Reden wir über Geld” focuses on an important aspect in relation to handling of crypto-assets: that of secure custody. It explains the functions that wallets perform, the differences between online “hot wallets” and offline “cold wallet” solutions, and the importance that access keys have in terms of control over crypto-assets.
Users self-hosting their crypto-assets retain complete control over them, but bear the entire responsibility for securely storing access credentials. If they are lost or fall into the wrong hands, it is generally not possible to recover access to crypto-assets. Alternatively consumers can hand over custody to a regulated CASP, which is required to meet legal requirements regarding security, organisation, and risk management.
The FMA informs readers about the safeguards that regulated custody service providers must have in place, as well as the safeguards that consumers should take – irrespective of the chosen form of custody. The objective is to increase awareness about losses due to operating errors, lack of backups or cyber attacks.
The current edition of “Let’s talk about money” can be found in English, along with all past editions on the website https://redenwiruebergeld.fma.gv.at/en. “Let’s talk about money” can also be found on Instagram under @redenwiruebergeld. Consumers can find information about providers’ authorisations in the FMA Company Database.
Journalists may address further enquiries to
Boris Gröndahl (FMA Media Spokesperson)
Telephone: +43/(1)249/59-6010
Mobile: +43 676 8824 9995
E-Mail: [email protected]