CoinCorner Unveils New Bitcoin Custody Solution
CoinCorner, a cryptocurrency service provider based in the Isle of Man, has unveiled a new Bitcoin custody solution specifically designed for customers in the UK. This service, named Vault, employs a multi-signature framework that enhances the security of users’ Bitcoin holdings by distributing key control between two entities, CoinCorner and its partner AnchorWatch.
Vault Features and Security
With Vault, customers are charged an annual fee of 1.5%, calculated monthly based on the Bitcoin stored in the vault on the first day of each month. The innovative custody model means that CoinCorner and AnchorWatch each retain one key, creating a dual-control system that mitigates the risks associated with single-signature custody models. This structure ensures that neither company can independently sign off on transactions, bolstering security against unauthorized transfers.
Insurance coverage for Bitcoin held in Vault is backed by Lloyd’s of London, protecting against risks such as lost private keys or unauthorized access. However, details concerning specific policy exclusions or conditions have not been made publicly available. Customers can customize their identity verification processes to include additional security measures, which CoinCorner facilitates through its support team.
Flexible Access and Withdrawal Process
The service does not impose long-term commitments, allowing users to transfer Bitcoin to and from their Vault freely. Withdrawals are processed instantly to the customer’s main CoinCorner account, while deposits will be recorded only in the following month if added after the first day. CoinCorner ensures that any Bitcoin remaining in the Vault continues to enjoy insurance coverage even after withdrawals.
It’s important to note that CoinCorner does not engage in lending out the Bitcoin stored in Vault, differentiating this service from other interest-bearing crypto platforms. Instead, users pay solely for the custody, transaction controls, and insurance provided.
Advanced Security Measures
Multi-signature wallets, which require multiple approvals for transactions, significantly enhance the security profile of the custody service. They are supported by AnchorWatch’s advanced infrastructure, which utilizes Bitcoin scripts and timed locks to implement state-of-the-art security measures. Furthermore, if key recovery is necessary—such as when a key is lost—time locks enable a different access method to be activated after a set duration, ensuring that no single party has lenient control over the asset.
Regulatory Context and Company Background
While AnchorWatch, the provider teamed with CoinCorner, is also a Lloyd’s coverholder and offers substantial coverage options for larger clients, the specifics regarding the insurance limits for CoinCorner’s Vault have not been disclosed. This new option coincides with the UK’s impending regulatory framework for cryptocurrency custody set to be enforced from October 25, 2027, a move that will require firms to adhere to rigorous standards regarding custody, capital, and consumer protections.
CoinCorner, which has been in operation since 2014, boasts a user base exceeding 350,000 across 15 global markets and has previously expanded into the UAE by collaborating with Seed Group for trading and storage services. As both the crypto landscape evolves and regulatory measures become more stringent, CoinCorner’s Vault represents a proactive step in adapting to these changes.
