China-based InVault, a blockchain based startup affirms to remove the human-based supervision especially to hold cryptocurrencies by introducing cryptocurrency custody as one of the best ways to make sure that the assets are safe and secured. As per the valid source of The South China Morning Post as on 11th September, there are numerous cryptocurrency exchanges aware of the fact that cryptocurrency custody is one of the best ways to secure large amounts of digital assets and cryptocurrencies.
According to Kenneth Xu, Founder and Chief Executive Officer of InValut said that “Today, the vast majority of cryptocurrency exchanges globally still involve their senior management in managing the transfer of digital tokens ordered by clients. Putting the private keys to your cryptocurrency assets in the hands of senior management is akin to putting all your money in their control.”
Besides this, Xu commented that cryptocurrency custody services will be widely accepted by cryptocurrency exchanges in China because they are more inclined to avert the risk of holding a large number of clients’ assets. Though certain restrictions imposed by China, the cryptocurrencies and crypto exchanges are actively used by crypto traders. Amid this, The South China Morning Post reported that Xu focuses to introduce the services in days to come. The company has already acquired an order from a cryptocurrency exchange to secure one million ether tokens.
Xu believes that the cryptocurrency custody services will support the exchanges so that they match purchasers and sellers of cryptocurrencies without any burden of managing, handling, and storage of cryptocurrencies. The existing traditional system keeps securities at a centralized depository and not held by any company. The similar way the new system will be followed.
Besides this, The South China Morning Post reported that while the Chinese government’s effort to shut down all local cryptocurrency exchanges by imposing certain restrictions since September 2017, there are numerous exchanges were said to have escaped the ban by reorganizing themselves under the new domain names. They used a variety of technique to escape the restriction by moving their servers from outside the country and get them registered in offshore countries.
The sources familiar with the subject matter profusely said that there are numerous investors transform their fiat currency into Tether by experiencing a direct exchange between cryptocurrency wallets. The actions would be executed through the use of Virtual Private Network (VPN) to conceal the identity of the user. However, Chinese regulators have technical capability in place that may block or shut down VPNs as said by the official sources close to a cryptocurrency exchange.
Let us not forget that the Chinese authority has always acquired to be early adopters by using the new age technology in a fair and transparent manner!!