InVault’s Cryptocurrency Custodian Services Launches in Hong Kong
Every cryptocurrency company worth its salt is mostly concerned with ensuring that its operations are transparent and absolutely secure. InVault, a Shanghai-based cryptocurrency startup, appears poised to ensure that this concern is met and resolved. The startup has recently announced plans to launch its cryptocurrency custodian services in Hong Kong.
The decision by InVault to open an office in Hong Kong is a right step in the right direction as it would see the startup benefitting from the new rules set by the country’s financial regulator. Recall that early this month, Hong Kong’s Securities and Financial Commission (SFC) announced that it had issued a new cryptocurrency licensing rule that makes it compulsory for all exchanges and fund managers operating in the country to insure their digital assets.
According to the organization, “The SFC generally expects that the insurance policy would provide full coverage for virtual assets held by a platform operator in hot storage and a substantial coverage for those held in cold storage (for instance, 95%).”
In mainland China, InVault has arrived at one million Ethereum already. Subsequently, the company, which has obtained a new trust license from the Financial Commission, will open its doors to the public from December. The startup is already predicting that it “may expand its reach across the region” because it is fully compliant with the regulations given by the SFC. Thanks to the new license, InVault now has the ability to offer Hong Kong its custodian services within the ambit of the law.
InVault has no plans to stop at just offering custodian services, however. Founder and Chief Executive Officer of the firm, Kenneth Xu, believes that the company can also offer a “regulated conduit” among traditional financial institutions and cryptocurrency-related companies.
Xu also disclosed that he is currently holding talks with “two mid-sized insurers” for the provision of coverage, which the startup plans to include in its custody services. He also elaborated on the risk factor facing insurers.
“The biggest challenge for insurers today is how to accurately measure the risk profile of a custodian, and its internal systems, to price the cryptocurrency insurance premium accordingly,” Xu added.
InVault, a cryptocurrency startup based in Shanghai, is opening an office in Hong Kong. The company, which offers custodian services to cryptocurrency firms, has been licensed by the Hong Kong’s Securities Financial Commission (SFC) and will begin operations in December.
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