Perspectives

What institutional-grade custody technology means from a compliance and regulatory standpoint

July 28, 2021 - 4 min read

Binance has been facing regulatory challenges in the UK for the past few weeks. The FCA has taken the decision to ban Binance Markets Limited from operating in the region. In an ever-changing regulatory environment, this demonstrates the importance to which institutions should consider their compliance and regulatory position in the cryptocurrency space.

The cryptocurrency industry has been around for a little more than a decade. As the newest financial market, the regulatory landscape remains unclear at this point. This is not due to a lack of trying from regulatory agencies globally but mostly due to the constantly evolving nature of the market, making it hard for the regulators to fully understand it and enforce relevant regulation.

Despite the fickle nature of the crypto industry, institutional players must remain flexible, resilient, and compliant in the face of regulators. Ledger Enterprise, with built institutional-grade custody solutions, is designed to help you leverage the cryptocurrency market in a regulatory-compliant manner.

Here is what the Ledger Vault means from a compliance and regulatory standpoint.

Audit Trail, always compliant

The mission of Ledger Enterprise Solutions is to enable financial institutions to build tailored services that capitalize on blockchain technology. Ledger Enterprise’s goal is to help institutions to provide innovative financial products to their clients.

Ledger Vault is also committed to helping digital asset businesses to audit user activity and policies on the Vault platform. Thanks to Ledger Vault, your company can venture into the digital asset space and be fully flexible and compliant in an ever-evolving regulatory landscape.

A key problem for most companies operating in the digital space is accurately providing transaction records to fully ensure internal and external auditing can be conducted without any issues. Although the importance of being able to recognize the need for transaction audibility is undeniable it is still a tough task.

The Ledger Vault platform helps make this easier. It allows companies to export transaction flows. Thanks to this feature, your company’s internal reporting processes become easier. It also allows you to easily provide transaction records that would enable external auditors to do their job effectively.

Non-repudiation, providing transparency in user activity

One of the main issues that are stopping institutions from entering the digital asset space is the anonymity of transactions. As a company, we understand the need to be transparent and run operations that align with regulation.

One of the core features of blockchain technology is transparency. Transactions recorded on the blockchain are broadcasted across the network, and anyone accessing the blockchain can view the transactions. The transparency allows you to easily track the lapses in your organization and fix them where necessary.

This is why we designed Ledger Vault, to provide digital assets businesses with the transparency of transactions. With the Ledger Vault, what you see is what you sign. You can monitor and trace signed transactions to understand who signs what and when within your organization.

The lack of transparency within an organization presents certain threats that can harm the company. Our solutions ensure there is no human error possible, ensuring total transparency and ease of operations.

Segregation of Duty, Eliminating Single point of Failure

Often, a single point of failure makes companies record losses with their digital asset investments. A single point of failure (SPOF) is a part of a network or a system that, if it fails, the entire system will stop working. Usually, they are undesirable in any system with the goal of achieving high availability or reliability.

To help you achieve the availability and reliability you need, Ledger Vault eliminates every single point of failure by developing a sophisticated governance framework protected within secure hardware.

The governance rules are flexible and can be customized to the organization’s requirements, depending on its structure and size. Thus, allowing your organization to totally mitigate operational risks and empower a more agile and safe governance infrastructure.

Total control of your funds, Always in Full Control

The best part of using Ledger Vault is that you can enjoy all the above-explained features and remain in total control of your funds.

Institutional investors and traders have lost billions of dollars via exchanges over the past decade through hacks and theft. However, you should know that digital currencies don’t imply digital risks.

Ledger Vault offers you not only the security of your funds but allows you to be in total control of the assets. Ledger’s concept of security goes beyond hot and cold wallets.

As an institutional investor venturing into the cryptocurrency space, the security of your funds and the freedom to be in total control of your funds should be at the top of your list. This is where the Ledger Vault solution comes in. Ledger Vault allows you to enjoy all these in a regulatory-compliant manner.