Entire Section

  • Application

    • COB 14.3.2 COB 14.3.2

      This section applies to an Authorised Firm that is a Digital Wallet Service Provider.

       

      Derived from DFSA RMI311/2021 (Made 30th June 2021). [VER39/10-21]

      • COB 14.3.2 Guidance

        1. An Investment Token is an Investment, as defined in GEN Rule A2.1.1. The Financial Service of Providing Custody, as defined in GEN Rule 2.13.1, therefore includes Providing Custody of an Investment Token, and a Person carrying on that Financial Service will require a Licence to do so.
        2. An Authorised Firm which is Providing Custody of Investment Tokens is, in addition to the requirements in this section, subject to other relevant requirements that apply to a firm Providing Custody of Investments. Other requirements include the Client Asset requirements in section COB section 6.11, the Client Investment requirements in COB section 6.13 and the Safe Custody Provisions in COB App 6.
        3. The Rules in this section will not apply to a Person providing a Digital Wallet to a Person who uses it for Self Custody of Investment Tokens, as the Security Tokens in that Digital Wallet are then held and controlled by that Person at their own risk.
        4. Private and public keys, which correspond to an electronic address, provide the mechanism to own and control Investment Tokens, (and other crypto assets). A private key is generated first, with the public key derived from the private key using a known one-way algorithm which varies across protocols. The corresponding electronic address, which is used to send and receive crypto assets, is a cryptographic hash (i.e. a shorter representation created through a processing algorithm) of the public key (which is a longer string of characters). It is the private key that grants the user the right to dispose of the crypto asset at a given address. Losing the private key often results in the loss of ability to transfer the crypto asset.

         

        Derived from DFSA RMI311/2021 (Made 30th June 2021). [VER39/10-21]