Regulated and Safe Crypto Interest Accounts with Insurance

Regulated and Safe Crypto Interest Accounts with Insurance

Welcome,

in this article we will evaluated regulated ans safe crypto interest accounts with insurance.

Crypto lending companies with interest accounts are open to announce and market what insurance they use and regulation.

However, many companies are not transparent with their security IT-standards and can be hard to compare because of this. They all have the same explanation and its because such a transparency would make them more vulnerable. This is of course true and therefor it can seems as a trustworthy explanation.

What is a Safe Crypto interest account?

It´s hard to define what a safe crypto currency account is and it´s impossible to determine what is the safest wallet. However, we have listed a few checkpoints we have worked through for our listed companies
  • Licenses and Regulations
  • Insurance and Cold Storage
  • Account and Login Security
  • Team and Operational history

Licensed and Regulated Crypto Interest Accounts

A licensed and regulated crypto company offering interest accounts as service must provide certain information to the authorities

Such information could consist of

  • Adequate operational capital
  • Internal and external auditor is mandatory
  • Sound Anti-money laundering (AML) policies and procedures
  • Data protection and security

Crypto Interest Accounts with Insurance and Cold Storage

Crypto interest account providers are usually using 3th party services for insurance and cold storage. Some of these services are

Ledger Vault

Ledger Vault is a cold-storage solution optimized for institutional usage. It is one of the most secure and flexible way for exchanges and crypto banks to store and manage their private keys. The Vault also insures digital assets. NEXO is using Ledger Vault for custodial infrastructure, like insurance and cold storage. YouHodler has also partnered with Ledger Vault.

Galaxy Digital and BitGo 

Galaxy Digital acquired BitGo and provides cold storage wallets with insurance protection. BlockFi is using BitGo as custodian among others,

Fireblocks

Many crypto business use Fireblocks software and APIs to custody, manage treasury operations, access DeFi, mint & burn tokens, and manage their digital asset operations. Celsius Network is using Fireblocks as custodian.

Bakkt

Bakkt Warehouse, the company’s regulated custodian, comprises both online and cold storage. For extra protection, Bakkt’s wallets are covered by an insurance policy from a leading global carrier.

Estana Custody

Kraken us using Estana custody.

Celsius Self-insurance 

Celsius acquired the Israeli crypto custody technology firm GK8 for $115 million. They are about to offer self-insurance and will now be able to provide an “all-in-one platform built for banks and financial institutions.”

Account and Login Security

Personal account security is very important and even if the service supplier must develop these features it´s up to the end user to enable them and use them. Actually, many crypto applications, wallets and exchanges force their users to switch on 2 FA, especially when the value exceeds a certain amount.

Below, we have listed some of the features we think can be worth considering when you compare personal account and login security standards. 

  • 2 FA Authentication (Google Auth)
  • Withdrawal confirmation (through 2nd password, email, SMS, Google Auth)
  • Whitelisting withdrawal addresses or IP´s
  • Log-in alerts (through email or SMS)

Almost all of the above mentioned security features are implemented in all serious cryptocurrency platforms. 

Team and Operational History

Another important factor to consider

  • Who did start the company and what history does the team have?
  • How long did the company operate?
  • Did the company experience any hack?
Today the team can quite easily be investigated via LinkedIn. All serious CEOs has a LinkedIn profile like Celsius, NEXO and BlockFi for instance. Also, all have several interviews in Youtube where you can find more information about them and the company.

 

It´s easy to find how long the company has operated for and of course there is more risk to enter and deposit into a new company rather than a company that have existed for several years.

If a crypto company did experience any hack or not doesn’t tell you too much because there have been so many hacks. However, it´s very important how they handle it in terms of communication and repaying the hack to their customers.

Safe Interest Account Summary

In the table below, we have summarized the different interest account providers.

  1. Licenses and Regulations
  2. Insurance 
  3. Account and Login Security
  4. Team and Operational history
However, there are different definitions for different terms so don´t take this table 100% accurate. Read more about each company and its safety standards in the summary text below to learn more.
 

Company

1

2

3

4

Binance Safety Information

YouHodler Safety Information

  • YouHodler is not regulated or licensed in any jurisdiction. 
  • They are connected to Ledger Vault that provides digital asset management system and $150M pooled crime insurance.
  • YouHolder has all account and login security features you need to protect your account.

Celsius Network

Kraken Safety Information

Crypto.com Information

Coinbase Safety Information

Coinbase is regulated and complies with all applicable laws and regulations in each jurisdiction in which it operates.

Coinbase is required to comply with a number of financial services and consumer protection laws

Coinbase carries crime insurance that protects a portion of digital assets  against losses from theft, including cybersecurity breaches.

However, the policy does not cover any losses resulting from unauthorized access to your personal Coinbase or Coinbase Pro account(s) due to a breach or loss of your credentials.

BlockFi Safety Information

NEXO Safety Information

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