Information Disclosure and Risks of Digital Asset Custody Of Digital Asset Business Operators

Modified on Thu, 16 Feb 2023 at 08:40 PM

Bitkub Online Co., Ltd. ("the Company") would like to disclose information and risks related to digital asset custody in order for all customers to receive complete and accurate information, and to ensure the customers that the Company prioritizes the safety of their assets as a top priority. The Company complies with related rules and regulations of the relevant regulatory entities at all times; the details are as follows.

1. Storage of Users’ Assets

     Digital asset business operators are not financial institutions according to the Deposit Protection Agency Act, and depositing money and digital assets with digital asset business operators is not protected by the Deposit Protection Agency Act. In case of any damage occurs to digital asset business operators, users may not receive a full refund immediately from such operators. 


2. Strength of Digital Asset Business Operator Evaluation

     Users can check the financial status of digital asset business operators from the financial statements and the revenue report published on the operator's website. In addition, other information should also be considered before deciding to invest or use their services, such as the service quality, customer complaint handling procedure, etc.


3. Risk Management of Users

     Users may manage the risks related to digital asset custody by depositing digital assets with a digital asset business operator in an adequate amount for the transaction purpose. For the remainder that is not used for transactions, users may consider keeping it in their personal digital wallets. Provided that, users should study how to use such wallets and safely store the private key prior to doing so.


4. Storing Digital Assets with Other Service Providers

     The operator stores digital assets with digital asset custodians (third-party custodians) as follows:


No.Service ProviderCountry of RegistrationRegulations in the Country of RegistrationWebsite or Other Details of Service Provider
1BitGo Trust Company, Inc.United States of America

Regulator: South Dakota Division of Banking 

License: South Dakota Trust Charter for Public South Dakota Trust Company

To operate as a custodian purpose - built for storing digital assets
2Coinbase Custody Trust Company, LLC.United States of America

Regulator: New York Department of Financial Services (NYDFS)

License: The New York State Limited Purpose Trust charter

To operate as custodian to offer custody services for virtual currency


The Company thanks you for your trust and kind support as always.

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