Virtual Asset Acceptance Policy (Virtual Asset Standards)
Date: 22nd September 2024
Version: 1.0
Introduction
In today’s fast-evolving financial landscape, virtual assets are transforming how we transact and perceive value. To navigate this dynamic environment responsibly, we have established a comprehensive framework for the acceptance of virtual assets within our organisation. This policy ensures that we integrate virtual assets in a secure, compliant, and risk-aware manner, aligning with our commitment to transparency and customer protection.
Purpose
This policy outlines our approach to evaluating and accepting virtual assets. It serves as a guide for our decision-making process, ensuring that we adopt assets in a way that maximises opportunities while minimising potential risks. By adhering to these standards, we aim to maintain regulatory compliance, uphold security, and safeguard our clients’ interests.
Scope
The Virtual Asset Acceptance Policy applies to all aspects of virtual asset evaluation and integration within our operations. It defines the criteria, processes, and responsibilities of assessing virtual assets, covering management, compliance teams, and relevant operational units. Our policy ensures that every decision aligns with strategic goals, regulatory requirements, and risk management practices.
Key Assessment Factors
Our assessment framework is built on the following factors to determine the suitability of a virtual asset for custody:
- Maturity: Evaluating market demand, liquidity, and volatility management.
- Security: Ensuring the asset can withstand security risks and offers proper safeguarding of private keys.
- Traceability & Monitoring: Verifying the ability to track the asset’s origin, destination, and transactions for transparency.
- Exchange Connectivity: Confirming the asset’s availability on regulated exchanges.
- Distributed Ledger Technology (DLT): Assessing the security, usability, and stress-tested nature of the DLT used.
- Innovation & Efficiency: Identifying the asset’s potential to solve real-world problems and create value for network participants.
- Functionality: Confirming the asset’s practical, quantifiable utility.
Assessment Framework
We define acceptable virtual assets to ensure compliance, risk mitigation, and alignment with our values. This framework involves a detailed evaluation of the asset’s issuer, intended use, liquidity, protocol, market developments, and operational risk. By conducting thorough due diligence, we aim to safeguard our clients and maintain transparency in our operations.
Ongoing Monitoring and Reporting
We commit to continuous monitoring of accepted virtual assets, leveraging insights from third- party AML tools, conducting annual reviews, and staying informed of any regulatory or media developments. In cases where a virtual asset no longer meets our standards, we will take appropriate steps to minimise any impact on clients, including notifying regulatory authorities as required.
Offboarding Assets
If we discontinue support for a virtual asset, we will provide clients with adequate notice and assistance to transfer their assets securely. Our priority is to maintain asset security throughout the offboarding process while ensuring compliance with all relevant regulations
