Long-term cryptocurrency holders who want to feel extra secure about their investments might want to check out Regal RA DMCC in Dubai. The precious metals enterprise is now offering its gold vaults for crypto cold storage, and has obtained an official license to do so.
Subscribe to the Bitsonline YouTube channel for great videos featuring industry insiders & experts
Originally a gold trader, Regal RA is the first country in the Middle East to receive the necessary licensing from the Dubai Multi Commodities Center (DMCC) to store and trade cryptocurrencies.
In a growing age of malware and cyber terrorism, crypto fans can’t be too sure that exchanges and other parties can do the job of securing their coins, anymore. If recent instances like those involving Coincheck in Japan and BitGrail in Italy have taught us anything, it’s that we can’t be too careful.
One of the big complaints surrounding exchanges is that they tend to rely too heavily on online and readily-accessible “hot wallet” storage — even when they claim otherwise.
Major criticism stirred around Coincheck’s storage methods when it was discovered that the company was using hot wallet storage for large reserves of its assets. It also reportedly did not use multi-signature wallets for NEM, which could have allegedly prevented the loss of over $500 million USD in the digital currency.
Executives at Regal, on the other hand, say the company will have no connection to a network, and physical devices will be fully insured to offer customers stronger protection against thieves and cyberattacks.
Additionally, any bitcoins or altcoins that consumers choose to house with Regal will be stored in an offline vault in Dubai’s Almas Tower, the official “headquarters of free zone DMCC.”
“Investors globally are seeing the potential in digital currencies,” said Regal chief executive Tyler Gallagher.
“However, they are reluctant to store large amounts of coins in online wallets and exchanges due to the high risk of hacking, identity theft, malware and other issues that can literally obliterate investments. We have developed what we believe is the number one most secure way of investing in crypto-commodities.”
The announcement comes at an ironic time. Just last week, Abu Dhabi’s international financial center said it was in the process of developing rules and legislation designed to assist in the handling of cryptocurrencies.
While major countries in the Middle East (e.g. Saudi Arabia) have proven wary of digital currency trading, the more business-oriented U.A.E. could be the nation that leads the path to change.
Regal RA manager Ksenia Kiseleva said the company is working extensively with the DMCC to ensure the process goes smoothly:
“We are working… to create parameters [for crypto-commodities] and allow crypto-commodities to be able to exist at a regulated level. We can already see the industry accepting crypto-commodities if they are not anonymous and not used as forms of payment.”
Are we likely to see more firms receive licenses like these in the future? Post your comments below.
Images via Pixabay