Announcement on the Company’s digital asset custody and users’ risks
January 16, 2023
In compliance with the SEC letter No. GorTor. (Wor) 70/2565 and for operational transparency purposes, Zipmex would like to provide users with information relating to its custodial arrangement and outlining any potential risks relating to digital assets held by a digital asset business operator as well as ways in which you can manage your own risk.
Third-party digital asset custody
The Company uses third-party custody services to store customers’ digital assets. The Company currently uses the following third-party custodian(s):
Coinbase Custody is a fiduciary under § 100 of the New York Banking Law and a qualified custodian for purposes of Rule 206(4)-2(d)(6) under the Investment Advisers Act of 1940, as amended, and is licensed to custody Client’s Digital Assets in trust on Client’s behalf.
Regulator: New York Department of Financial Services (NYDFS)
License: Virtual Currency License / Limited Purpose Trust Charter
To operate as a custodian to offer custody services for virtual currency
|BitGo Trust Company, Inc.||USA|
Regulator: State of 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
List of sourced exchange service provider(s)
As a licensed digital asset broker, the Company currently operates with sourced exchange(s) as follows:
List of sourced exchange(s)
|Sourced exchange||Origin||Regulatory agency|
|Binance||Australia||InvestbyBit Pty Ltd (ABN 98 621 652 579) (trading as “Binance Australia”) has been granted a Digital Currency Exchange (DCE) provider registration by the Australian Transaction Reports and Analysis Centre (AUSTRAC) (registration number 100576141-001). The registration enables InvestbyBit Pty Ltd to provide digital currency exchange services.||https://www.binance.com/en|
|Zipmex Pte. Ltd.||Singapore||Zipmex Pte Ltd is presently exempt from holding a licence pursuant to the Payment Services (Exemption for Specified Period) Regulations 2019. It has applied for a digital payment token licence with MAS, and its application is presently pending approval.||https://zipmex.com/|
Custody of users’ funds
Digital asset business operator is not a financial institution as defined under the Deposit Protection Act of Thailand. Any funds and digital assets deposited into a digital asset business operator are, therefore, unprotected under such Act. In the event of distress sustained by the digital asset business operator, users’ funds may not be fully refunded at once.
Assessing digital asset business operator’s stability
Users are able to assess the financial position of a digital asset business operator by reviewing financial statements and turnover published on such operator’s website. Users are also advised to consider relevant business fundamentals such as quality of services and responsiveness to complaints.
Management of users’ risks
Users may manage their digital assets by only depositing requisite amounts for transactions, and hold any remaining balances in their own cold wallet. However, please ensure you do your own research – prior understanding of wallet usage and private key storage is advised.