SUMMARY OF THE CUSTODY POLICY
This is a summary of Coinmotion's Custody Policy, which ensures the appropriate custody and proper administration of crypto-assets in accordance with the EU Regulation on Markets in Crypto-Assets (MiCA). The purpose of this summary is to provide customers with easily understandable information on the custody and administration of crypto-assets by Coinmotion.
1. CUSTODY AND ADMINISTRATION OF CRYPTO-ASSETS
Coinmotion provides three main services that involve custody and administration of crypto-assets:
- Standard Crypto-Asset Services
- These are Coinmotion’s core services, allowing customers to store, exchange, and transfer crypto-assets. Coinmotion independently handles the custody and administration of these assets without outsourcing.
- Expansion Service
- This service offers access to a wider range of crypto-assets. For this service, Coinmotion uses Bitpanda GmbH as an outsourcing partner to handle custody and administration.
- OTC Service
- This service is designed for high-net-worth customers for large crypto-asset transactions. Coinmotion manages custody independently but may use external partners if necessary.
Each service provides customers with a separate ‘crypto-asset account,’ meaning customers have different accounts for each service they use.
2. SAFEKEEPING AND RECORD-KEEPING
The safekeeping of customer crypto-assets is thoroughly documented in a separate policy, ensuring assets are securely stored.
Coinmotion maintains a detailed register of positions for each customer, accurately tracking all crypto-asset holdings and transactions to reflect each customer's rights.
3. INFORMATION PROVIDED TO CUSTOMERS
Coinmotion is committed to transparency and provides customers with the following information related to custody and administration of crypto-assets:
● Contractual terms
○ Customers can access the terms of each service electronically before they start using them.
● Statements of position
○ Customers will receive a statement of their crypto-assets at least every three months, detailing balances, values, and transfers.
● Marketing transparency
○ Coinmotion clearly indicates who handles custody and administration for each service, ensuring customers understand how their assets are managed.
4. LIMITATION OF LIABILITY
Coinmotion is liable for the loss of any customer crypto-assets or access to them if the loss is attributable to Coinmotion's actions. However, this liability is capped at the market value of the asset at the time of the loss. Coinmotion is not liable for incidents beyond its control, such as e.g. inherent issues with the blockchain or distributed ledger technology.
This liability provision is taken into consideration contractually in between Coinmotion and its clients. The terms will outline the extent of Coinmotion's liability and the circumstances under which Coinmotion is not liable, ensuring that customers are fully informed of the liability framework and their rights in the event of a loss of crypto-assets.
5. OUTSOURCING AND THIRD-PARTY SERVICES
When Coinmotion outsources custody services or works with third parties, it ensures these providers comply with MiCA. Outsourced activities are, for the time being, limited to Expansion Service, where custody and administration services are outsourced to Bitpanda GmbH in Austria.
Coinmotion ensures that any third-party service providers involved in crypto-asset custody meet regulatory standards to protect customer assets.
6. QUESTIONS?
Do you have questions about custody and administration of your crypto-assets?
Please contact [email protected]
