| 1. |
Virtual Assets held by a VASP providing Custody Services are not depository liabilities or assets of the VASP. |
| 2. |
VASPs shall not authorise or permit rehypothecation of Virtual Assets for which they provide Custody Services [regardless of whether they have obtained a client’s consent], and VASPs providing Custody Services shall not seek or attempt to obtain such consent as part of the Custody Services they provide. |
| 3. |
VASPs providing Custody Services shall segregate the Virtual Assets of each client in separate VA Wallets containing the Virtual Assets of that client only. |
| 4. |
VASPs must maintain control of each Virtual Asset at all times while providing Custody Services. |
| 5. |
VASPs providing Custody Services must be a separate legal Entity from any member of their Group that provides services relating to VA Activities other than Custody Services, and must implement and strictly enforce policies and procedures to achieve necessary segregation between operations relating to Custody Services, and all other businesses. |
| 6. |
VASPs must have adequate policies and procedures to ensure that there is sufficient operational and physical segregation between individuals handling operations for Custody Services, and their other core businesses and operations including, but not limited to, other VA Activities conducted by their Group. Such policies and procedures shall establish a separate team to handle the VASP’s Custody Services only, consisting of individuals who have no conflicting duties or access to information which may give rise to any conflicts of interest.
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