One of the biggest pain points when it comes to cryptocurrency investing is the secure, long-term storage of your investments. Getting custody right is crucial to the long-term prospects for a cryptocurrency investment.

Cryptocurrency exchange hacks, sophisticated phishing scams, and improperly secured backups are three key avenues through which investors lose access to their cryptocurrency. Many investors are not even aware of these risks, let alone how to properly manage them.

Those investors who are unable to devote the time and energy into developing and implementing a secure storage setup often delegate this responsibility to the cryptocurrency exchange through which they make their investments – but the long history of exchanges being hacked and losing their customers’ money makes this undesirable.

Source: Jaltech using Crystal Blockchain data

For these investors, a dedicated cryptocurrency custodian may be a better choice.

The recent granting of a Crypto Asset Service Provider license to Jaltech Digital Custody now means that South African investors, institutions, and corporates have access locally to a secure, affordable, and regulated cryptocurrency custodian for the long-term storage of their investments.

The granting of this license entailed a thorough interrogation of the company’s processes and procedures from the Financial Sector Conduct Authority. Jaltech Digital Custody is the only pure-play cryptocurrency custodian to receive a Crypto Asset Service Provider license to date.

Highlights of the Jaltech Digital Custody offering

Multi-party Computation eliminates single points of failure

Jaltech has appointed the world’s leading cryptocurrency wallet infrastructure provider Fireblocks. Fireblocks technology has processed over R50 trillion in cryptocurrency transfers and provides services to over 1,300 financial institutions globally.

Fireblocks’ Multi-Party-Computation technology allows cryptocurrency transactions to be approved in a multilayered approval process without the private key ever being fully formed on a single device.

Off exchange

All cryptocurrencies under Jaltech’s custody are held off-exchange. This step completely removes an investor’s exposure to the risks of being on a cryptocurrency exchange.

Third-party approval

Jaltech has appointed independent senior attorneys and accountants. Their role is to act as an independent party to provide final approval on individual requests to withdraw cryptocurrencies of more than a predetermined value

Simple deposit and withdrawal processes

Jaltech’s custody team will navigate you through and manage the entire process. All individual requests to withdraw cryptocurrencies will be authenticated in person or via a virtual meeting. This process mitigates the potential of a fraudulent withdrawal request being submitted.

Accessible by heirs and financial advisors

Jaltech’s service allows heirs and financial advisors access to their family member’s or clients’ cryptocurrency as a contingency if/when the need arises.

Low fees

Jaltech Digital Custody has a simple and transparent fee structure – an ongoing 0.5% per annum fee, with a withdrawal fee that diminishes over time and is designed to encourage long-term holding.

Disclaimer: The information contained herein is not intended to be construed as investment, tax, legal, accounting or other advice. Please consult a professional advisor for these matters. Jaltech Digital Custody (Pty) Ltd (FSP Number: 53557) is an authorised Financial Service Provider. Cryptocurrency assets are not insured by Jaltech Digital Custody and the risk of loss remains with the client during transfer and before, during and after use of custody services. Cryptocurrency investments are highly volatile and can result in a loss of all or part of capital.