Chinese Startup Gets Crypto Custodial Services License in Hong Kong
HomeCryptocurrency NewsCryptocurrencies Latest News

Chinese Startup Gets Crypto Custodial Services License in Hong Kong

Cryptocurrency custodians are third parties that store large amounts of digital assets for institutions, hedge funds, exchanges and issuers...

Review: Coldcard’s BTC Hardware Wallet Is Air-Gapped for Added Security
PR: Remco Launches Pre-ICO Token Sale – Parent Company Processed $700,000,00 in the Last 24 Months
The Daily: Security Experts Rank Exchanges by Safety, Malta Dominates Trade Volume

Cryptocurrency custodians are third parties that store large amounts of digital assets for institutions, hedge funds, exchanges and issuers of initial coin offerings. Companies in Hong Kong now have a new locally regulated option, which could help to increase investor confidence.

Also Read: You Can Now Withdraw Split BCH and BSV Coins From Coinex

Keep Your Holdings In a Vault at Invault

Chinese Startup Gets Crypto Custodial Services License in Hong KongInvault, a Shanghai-based startup, has secured a new trust license from the Hong Kong financial regulator to act as a digital custodian in the Chinese special administrative region. It plans to begin offering automated cryptocurrency custodial services in December. It is also said to be in talks with a couple of “mid-sized” insurance companies to possibly add their coverage to its services.

The Securities and Futures Commission of Hong Kong recently introduced a new regulatory framework for the local cryptocurrency industry, including exchanges, asset portfolio managers, intermediaries and fund distributors. Among other requirements, licensed asset fund mangers need to choose to keep clients’ funds at a custodian, an exchange or in cold storage. This is the niche Invault is now stepping into, storing the private keys for clients’ wallets in a physical vault.

Storing 1 Million ETH in Mainland China

Chinese Startup Gets Crypto Custodial Services License in Hong KongInvault is backed by venture capital fund Matrix Partners China, which contributed $5.85 million in seed funding earlier this year. The startup reportedly already has a staff of over 40 in Shanghai and holds 1 million ETH under custody for mainland Chinese clients.

“We believe that globally, custodians for cryptocurrency assets will be regulated and operated under a trust license,” Invault founder and CEO Kenneth Xu told the South China Morning Post. He also predicts that most of the demand for institutional custodian services in Asia will come from Hong Kong and Singapore.

Last month the New York State Department of Financial Services granted a license to a subsidiary of Coinbase to operate as an independent qualified custodian for six cryptocurrencies. And earlier this year financial analysts warned that a lack of institutional custodians is a significant barrier to investment in the field.

Would cryptocurrency users feel safer to work with companies that keep their holdings with a custodian? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.

The post Chinese Startup Gets Crypto Custodial Services License in Hong Kong appeared first on Bitcoin News.



from Bitcoin News https://ift.tt/2KyOqJ6
Name

Bitcoin News,5117,Bitcoinist.com,4741,Cryptocurrencies,4741,Cryptocurrencies Latest News,5117,Cryptocurrency Latest News,4741,Cryptocurrency News,9858,
ltr
item
Cryptocurrency Latest News: Chinese Startup Gets Crypto Custodial Services License in Hong Kong
Chinese Startup Gets Crypto Custodial Services License in Hong Kong
https://news.bitcoin.com/wp-content/uploads/2018/11/hong-kong-768x768.jpg
Cryptocurrency Latest News
http://cryptocurrencylatest.blogspot.com/2018/11/chinese-startup-gets-crypto-custodial.html
http://cryptocurrencylatest.blogspot.com/
http://cryptocurrencylatest.blogspot.com/
http://cryptocurrencylatest.blogspot.com/2018/11/chinese-startup-gets-crypto-custodial.html
true
1236144943044321696
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy