Liminal, a regulated digital asset custody provider with multi-party computation (MPC) wallet infrastructure, recommends the practice of cryptocurrency self-custody for individual investors.

According to Mahin Gupta, the founder of Liminal, self-custody of crypto assets provides individuals with the ability to hold value under their direct control. However, this newfound control comes with responsibilities and considerations.

“Self-custody gives us a way to hold value under our control,” Gupta said. “I think that if you are an individual and if you can invest time in understanding how to do it securely, then you should always self-custody as it removes most of your counterparty risk associated with third-party custodians.”

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However, Gupta acknowledges that the landscape differs for businesses, especially those involved in regulated activities such as selling, lending, or converting digital assets. In such cases, regulatory compliance becomes a crucial factor. Gupta advises businesses to consider regulated custodians for such activities, citing several reasons for this choice.

“Regulated custodians provide a level of oversight and compliance that is essential when dealing with regulated activities,” he said. “They offer a layer of security and consumer protection that self-custody might not provide.”

However businesses engaged in regulated activities should seriously consider regulated custodians due to the regulatory requirements and the additional protection they offer.

Regulatory environment

Gupta expressed optimism regarding regulatory clarity, especially in developing countries where digital asset adoption is on the rise. He believes that the increased adoption of digital assets will necessitate more robust investment protection, consumer protection, and better regulatory and compliance standards.

Amid controversies that hounded the cryptocurrency industry in recent months, the market is still experiencing rapid growth. 

“Liminal has processed nearly $7 billion in transactions and currently manages around $650 million in assets,” Gupta said. “The company is actively pursuing regulatory compliance in multiple jurisdictions to ensure its services are in line with legal requirements.”

Liminal serves a wide range of industries, including crypto exchanges, payment processors, remittance companies, gaming firms, and service providers, all of which require efficient and compliant infrastructure. Gupta emphasized that security and compliance are paramount in a rapidly evolving digital asset landscape.