Article 5 Segregation and safekeeping of clients’ crypto-assets and funds

1. how the notifying entity ensures the following:

   1. clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services;’ fundsmeans funds as defined in Article 4, point (25), of Directive (EU) 2015/2366; are not used for its own account;

   2. crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; belonging to the clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services; are not used for its own account;

   3. the wallets holding clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services;’ crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; are different from the notifying entity’s own wallets;

2. a detailed description of the approval system for cryptographic keys and safeguarding of cryptographic keys including multi-signature wallets;

3. how the notifying entity segregates clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services;’ crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology;, including from other clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services;’ crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; where wallets containing crypto-assetsmeans a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology; of more than one clientmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services;, are kept in omnibus accounts;

4. a description of the procedure ensuring that clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services;’ fundsmeans funds as defined in Article 4, point (25), of Directive (EU) 2015/2366; other than e-money tokens are deposited with a central bank or a credit institutionmeans a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 and authorised under Directive 2013/36/EU; by the end of the business day following the day on which they were received and are held in an account separately identifiable from any accounts used to hold fundsmeans funds as defined in Article 4, point (25), of Directive (EU) 2015/2366; belonging to the notifying entity;

5. where the notifying entity does not intend to depositmeans a deposit as defined in Article 2(1), point (3), of Directive 2014/49/EU; fundsmeans funds as defined in Article 4, point (25), of Directive (EU) 2015/2366; with the relevant central bank, which factors the notifying entity takes into account to select the credit institutionsmeans a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 and authorised under Directive 2013/36/EU; with which to depositmeans a deposit as defined in Article 2(1), point (3), of Directive 2014/49/EU; clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services;’ fundsmeans funds as defined in Article 4, point (25), of Directive (EU) 2015/2366;, including the notifying entity’s diversification policy, where available, and the frequency of review of the selection of credit institutionsmeans a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 and authorised under Directive 2013/36/EU; with which to depositmeans a deposit as defined in Article 2(1), point (3), of Directive 2014/49/EU; clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services;’ fundsmeans funds as defined in Article 4, point (25), of Directive (EU) 2015/2366;;

6. how the notifying entity ensures that clientsmeans any natural or legal person to whom a crypto-asset service provider provides crypto-asset services; are informed in clear, concise and non-technical language about the key aspects of the notifying entity’s systems, policies and procedures to comply with Article 70(1), (2) and (3) of Regulation (EU) 2023/1114.

In accordance with Article 70(5) of Regulation (EU) 2023/1114, crypto-asset service providersmeans a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59; that are electronic money institutionsmeans an electronic money institution as defined in Article 2, point (1), of Directive 2009/110/EC; or credit institutionsmeans a credit institution as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 and authorised under Directive 2013/36/EU; shall only provide the information set out in paragraph 1 of this Article.