The case for self-hosted wallets in face of global regulations

By Alex Davis (June 20, 2022, 1:57 PM EDT) -- On Dec. 9, 2018, Gerald Cotten, CEO of Canada’s then-largest cryptocurrency exchange QuadrigaCX passed away, taking with him $215 million worth of the exchange’s client assets (primarily in Bitcoin and other cryptocurrencies). After QuadrigaCX’s demise, roughly 17,000 creditors, primarily consisting of everyday Canadians, lost most of the assets provided to QuadrigaCX’s “custodial” or “hosted” cryptocurrency wallet. QuadrigaCX marketed itself as a licensed money services business with FINTRAC, in compliance with anti-money laundering rules....