NorthCrypto offers its clients a comprehensive custody and administration service of crypto-assets (“Crypto-Asset Account”). In the Crypto-Asset Account, NorthCrypto custodies clients crypto-assets by safekeeping and controlling them on behalf of the clients. For avoidance of doubt, NorthCrypto does not offer payment services to clients.
Crypto-Asset Account can be used to store crypto-assets: i) deposited to NorthCrypto’s service through a transfer from external virtual wallets or ii) bought through NorthCrypto’s transmission service. Similarly, when you wish to transfer your crypto-assets outside NorthCrypto’s service or sell your crypto-assets through NorthCrypto’s transmission service, the Crypto-Asset Account is utilized to complete those services. Clients can access to their crypto-assets by logging into the service using their email and password.
NorthCrypto utilizes several advanced wallet systems, such as hot-wallet, hardware-wallet, and multisig-wallet, all provided by the industry leader Fireblocks, which provide additional protection for both storing and managing crypto-assets. This structure allows for flexible and secure crypto-asset custody adapted to the client's needs. NorthCrypto also uses Elliptic and Roaring to conduct automated compliance checks (e.g., sanctions screening, deposit origin analysis) before crediting deposits to customer accounts.
NorthCrypto maintains a Register of Positions of client funds and submits quarterly reports on the amount and value of the client's crypto-assets in euros and the transactions made during the quarter. The register is maintained using two parallel methods: one updates balances in real-time with every transaction, while the other reconstructs balances from historical events, ensuring accounting integrity and auditability. The statement of position is made available in electronic format (PDF and CSV) and can be downloaded by the client at any time through the service. A quarterly email is also sent to clients summarizing recent account activity.
When client wishes to make a deposit to Crypto-Asset Account, NorthCrypto creates a unique deposit address for each client. Clients’ funds are stored separately from any NorthCrypto funds, increasing security and facilitating the management of crypto-assets. Clients can rest assured that their crypto-assets are managed separately and securely.
Two-factor authentication (2FA) is available for enhanced security. All account actions are monitored and logged, including login IP addresses and activity patterns. Fireblocks technology also utilizes the following security measures:
Additionally, NorthCrypto keeps most of the clients’ crypto-assets in cold wallets that remain offline and out of reach of cyber threats. Only the necessary amount is maintained in hot wallets to facilitate transfers and settling after completed orders. Security is further reinforced through continuous monitoring, access restrictions, and the enforcement of strict internal procedures.
NorthCrypto has also established a robust and comprehensive internal documentation based on the regulation on digital operational resilience for the financial sector (“DORA”). Based on this documentation NorthCrypto, for example, has evaluated all the ICT-systems it uses, made ICT risk analysis and continuity plans for possible distributions.
The safekeeping of clients' crypto-assets is a core responsibility of NorthCrypto. Safeguarding of clients’ crypto-asset means that NorthCrypto safeguards them at an operational level (e.g., preventing unauthorized access and segregation of funds) and on legal level (e.g., making robust contracts). Before using the service, NorthCrypto will ensure that an appropriate agreement has been entered into with the client regarding the use of the service.
The agreement includes the identity of the parties, a description of the service, the custody policy, the means of communication (including client authentication), an overview of the Company’s security systems, all applicable fees and charges, and the governing law. This contract sets forth that all the crypto-assets held in Crypto-Asset Account belong solely to the client and are never transferred to NorthCrypto as its own property. As a result, these assets are excluded from NorthCrypto’s financial accounts and cannot be used for any purpose other than safekeeping.
To achieve operational and legal segregation, NorthCrypto ensures that all clients' crypto-assets are stored separately from its own holdings, using dedicated Crypto-Asset Accounts. Access to these accounts is strictly limited to a small group of trained employees who are authorized to manage assets in accordance with internal security protocols. To further safeguard against mismanagement or unauthorized use, only designated employees have access to clients' crypto-assets, and their role is strictly limited to processing transactions initiated by clients. Additionally, NorthCrypto’s bookkeeping and oversight mechanisms are designed to detect and prevent any unauthorized activity. By implementing these robust security and compliance measures, NorthCrypto ensures that clients' digital crypto-assets remain secure, protected, and fully accounted for at all times. As mentioned above, since NorthCrypto maintains a Register of Positions of client crypto-assets, it is also able to segregated each clients crypto-assets form another.
Therefore, NorthCrypto has established clear and effective practices that ensure the safekeeping and segregation of clients' crypto-assets while preventing any unauthorized use of those assets.