Fusang Prepares to Launch New Vault Service to Accommodate Increased Demand for Crypto Custody
As elite net-worth and corporate clients operating in crypto, Fusang Investment is getting ready to launch its Fusang Vault, a new crypto-custody project in Hong Kong designed by the asset management company as a means of satiating increased demands for custody.
As the vault projects launch is expected to be fully available in Q4 of 2018, Henry Chong, the company’s CEO stated that as a custody provider in conventional financial services, an individual member of the cryptocurrency industry was required to provide asset housing services for clients and official inspect the assets regularly.
Henry Chong spoke about the undeniable importance of their holding service, comparing cryptocurrencies and digital assets to bearer bonds by explaining that anyone possessing the assets is considered to own them and no validation of ownership is present.
One of the world’s largest cryptocurrency exchange platforms, Coinbase, explained the details of their services and protective procedures. Coinbase’ custody service aided in protecting digital assets by implementing a system requiring more than one signature to proceed with any financial transfers, limiting withdrawal and consistent auditing.
Fusang Vault had no details explained regarding its services although the company did state that it was collaborating with insurance providers to implement strengthened cybersecurity insurance for all cryptocurrencies and assets belonging to customers. While more companies and projects are continuously attracted to digital currency trading, several of today’s transactions are made through OTC services as opposed to these exchanges.
Jolyon E Russell from Simmons and Simmons explained that the lack of any regulations placed on crypto-holding, clients are obliged to follow terms and conditions stated in the contract should any losses occur.
Several legal problems are still an issue. He goes on to explain more regarding the number of digital assets each custody service maintains and in what form each company would house these assets. Furthermore, simply have multiple accounts isn’t a solution to the current problem of those unable to pay their debts and how their assets will be provided the proper holding and protection from clients.