Disclosures and risks associated with asset custody
According to the announcement from the Securities and Exchange Commission (SEC), Notification No. 17/2566, dated September 25, 2023, regarding the criteria for disclosing information and notifying risks to customers by digital asset business operators.
Coins TH., 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
The Company stores and safeguards digital assets with a third-party custodian which is BitGo Trust Company, Inc. Under the regulatory oversight of the regulatory authority in the United States of America, which is registered and established. You can access the website of the service provider or relevant information at the following link: https://www.bitgo.com/
2. Asset Custody
Companies or entities engaged in digital asset businesses are not financial institutions under deposit protection laws. Depositing digital assets with these entities is not the same as depositing funds protected under deposit protection laws. If any loss occurs with the digital asset business operator, you may not receive a full refund of your assets immediately.
3. A Company Financial Assessment
Users can check the financial status of a company 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.
4. Risk Management
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.