Copper.co, the London-based digital asset infrastructure provider, today announces it has obtained a legal opinion from gunnercooke which confirms that Copper has included in its Vault Account cryptoasset custody solution systems and controls designed to minimize the level of Copper counterparty risk to which its clients are exposed.
Edward Black at gunnercooke said: “We are delighted to have worked with Copper on this project, which shows a serious commitment by Copper to explaining how Copper seeks to mitigate the risks to its clients inherent in taking custody of cryptoassets. We believe that a core part of trusting any crypto custodian with cryptoassets is having a clear understanding of how they protect those assets.”
James Burnie at gunnercooke said: “Whilst there is no such thing as impenetrable security, what we have managed to achieve is a clear description of how those risks have been understood and mitigated by Copper. One of the greatest risks to clients in using crypto custodians is lack of understanding of how they look after assets, and, in our view, working collaboratively with lawyers to provide a clear opinion on the systems and controls in place is an example of best practice.”
The law firm’s evaluation involved consideration of the range of different systems and controls put in place by Copper to protect cryptoassets, which are held in segregated wallets dedicated for sole use by that client, including:
The private key used to transfer cryptoassets out of the segregated wallets is split into three parts, two of which are required to make a transaction, and Copper only has access to one of these parts.
Ensuring that Copper’s documentation is designed to keep legal title with Copper’s client rather than transferring legal title to Copper.
The use of optical air-gaps to create physical separation between the internet and the vault, which can only be crossed using a QR code.
Policies for closely controlling potentially sensitive data.
The ability to require a co-signature process be completed before for making withdrawals.
Obtaining insurance cover.
Obtaining external coding audits to validate the security standards that have been put in place.
Dmitry Tokarev, CEO, Copper.co, said: “Every custodian on the market will say their security is robust. But there is a difference between saying it and proving it. That is why we entrusted gunnercooke to undertake this project.
“As demonstrated by recent spikes in the price of Bitcoin and other altcoins, interest in crypto is only growing – largely among corporate investors. Regulators have not ignored this uptake and blanket formal regulation cannot be far away, which we welcome as it will help cryptocurrency enter the mainstream. We are committed to ensuring that we are accountable not only to the highest standards but leading the way with best practice when this day arrives.”
James Burnie at gunnercooke added: “Solving counterparty risk is something which has plagued the traditional financial service sector. It has been very interesting to see how, using new technologies, it is possible to put in place systems and controls to help mitigate against this risk, and it may be that the traditional financial sector could learn from this process.”
Edward Black at gunnercooke added: “The requirements for keeping cryptoassets secure are continually evolving, and trying to solve the issues involved is no easy task. What was particularly interesting in providing this opinion was to explore the potential for interplay between different methodologies for keeping cryptoassets secure, rather than assuming that there is a single solution.”
Notes for Editors
For more information, please contact
Copper@cicero-group.com | +44 (0) 7850 229 457
Founded in 2018 by Dmitry Tokarev, Copper provides a gateway into the cryptoasset space for institutional investors by offering custody, prime services, and settlements across 150 digital assets and more than 25 exchanges. It is committed to providing flexible solutions for institutional investors that can adapt to the changing cryptoasset space, while enabling far greater transparency and control for asset managers.
Copper’s fully integrated products are unique in the cryptoasset space. Underpinned by multi-award-winning custody, Copper has built the comprehensive and secure suite of tools and services required to safely acquire, trade, and store cryptocurrencies, including access to margin lending trading facilities and the DeFi space.
At the core of Copper’s infrastructure is ClearLoop, a framework that connects the universe of exchanges in one secure trading loop — with real-time settlement across the Networks. Integrated with market leading spot and derivative crypto exchanges, ClearLoop has already transformed the way in which institutional investors can engage in the cryptoasset space since launching in May 2020.
For more information, please visit: www.copper.co
gunnercooke is a full-service commercial law firm, with a market leading blockchain, cryptoasset, smart contracts and DeFi team, being uniquely able to advise DeFi networks, token designers and developers, blockchain platforms, crypto-exchanges, exchanges run using DLT, crypto-custodians, crypto-brokers, crypto-funds, and other participants in the blockchain ecosystem.
Members of our team have involved in advising on blockchain and cryptoassets from the start, with having had experience working on the first successful initial coin offering in the United Kingdom and the first equity issuance settled on-chain.
For more information, please visit: https://gunnercooke.com/practice-area/blockchain-cryptoassets-smart-contracts-and-defi/
Our settlements and clearing service is backed by our award winning custody technology
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