In a bid to protect Cryptocurrency holders from the negative implications of Crypto theft, Hong Kong has introduced new laws to govern the storage of Digital Assets. The guidelines seek to compel managers of Cryptocurrency portfolios and Crypto exchange platforms to employ a Custodian service to protect their wallets.
In response to the prospective demand for Crypto custodian services, Invault has made its debut in Hong Kong. The Shanghai-based tech firm is aiming to proffer the best services to users in an aim of supporting Crypto markets by offering cutting-edge state of the art security services.
Kenneth Xu, the CEO of Invault believes that Crypto custodian services will be the new norm for Crypto exchanges and portfolio managers in the near future. The CEO is assuring the world that Invault will be a licensed trustee of Digital Assets in this regard. While speaking to South China Morning Post, he added that Crypto custodian services will be licensed and regulated to protect Crypto holders. This will ensure the upholding of ethical practices that underpin trust.
The Invault model operates by securing private keys in offline physical vaults with bank-like security. A private key is a complex code that authorizes Crypto transactions such as transfer, withdrawals, exchange, etc.
Currently, Invault has over 1 million Ethereum Tokens under their custody in mainland China. If the current custody services are anything to go by, doubtlessly, Invault is competent, trustworthy and capable.
Hong Kong Regulations Will Revolutionize Crypto Markets
The Shanghai-based Cryptocurrency Custodian, Invault, is taking advantage of Hong Kong laws that seek to stabilize Cryptocurrency markets from volatilities that arise following scams, hacks and other malpractices that result in Cryptocurrency losses.
As third-party partners from now onwards, Crypto custodians will be playing a pivotal role in ensuring that their client’s virtual assets are secure. This would eventually protect investors and encourage mass Cryptocurrency adoption. Hence, benefits of Digital Assets such as price rallies, hedging against fiat-based inflation, would be largely felt in the region.
Invault, according to Xu will be seeking to be a conduit that links Cryptocurrency wallets and the mainstream financial platforms. It will thus remove the risks of human involvement in handling Cryptos to significantly secure Digital Assets.
Crypto Security Is The Leading Concern To Investors
Security concern has been a major issue to Crypto investors, Crypto exchange platforms and Blockchain platforms since the emergence of Bitcoin in 2009. In many instances, hackers have been breaching security architecture and making away with Digital Assets worth billions of dollars. Although the trend has been decreasing with improvement in security features of platforms, hackers have become more sophisticated.
In addition to Hong Kong, the US Securities and Futures Commission (SFC) is investigating the benefits of Crypto custodial services and self-custody to rein on the run-away hacking. Meanwhile, firms such as BitGo and Coinbase have already made a head start and Invault is following suit.
The Invault license of trust will be operational from December 2018 so that the Custodian can start offering services.