# Who Holds Your Keys in Law: Custody Explained

URL: https://www.caijing188.com/crypto-custody-law/
Published: 2026-10-27T16:56:44+08:00 | Updated: 2026-10-27T16:56:44+08:00
Verified: 2026-10-27

## Quick answer
Custody models differ on who can move assets and whose estate they enter. Segregation and bankruptcy remoteness depend on law, not labels.

## Summary
Custodial, self-custody and qualified custody answer different questions. Segregation and bankruptcy remoteness are legal conclusions, not product labels, and the governing law decides what a holder keeps.

## FAQ
Q: Does holding the keys mean I own the asset?
A: Control and ownership are related but distinct. Self-custody gives you direct control with no intermediary claim. With a custodian, ownership is defined by the contract and local law rather than by who can technically sign a transaction.
Q: What does segregated mean in practice?
A: That customer assets are identified separately from the firm's own assets in its records and, where required, held in designated accounts. It does not guarantee individual on-chain separation, and it does not settle the insolvency question.
Q: Is a qualified custodian safer?
A: It typically means supervision, capital requirements and segregation duties that an unregulated provider does not carry. It does not remove operational or fraud risk, and the status is defined by the regime that grants it, so it does not travel across borders.
Q: What happens to my assets if a custodian fails?
A: It depends on the jurisdiction, the account structure and whether the assets were used under the terms. Segregated customer property is commonly treated separately from the firm's estate, but the process is slow and the outcome is decided by local law, not by marketing.
Q: Can I split custody between models?
A: Yes, and many holders do: a working balance with a provider for trading, a longer-term position in self-custody, and a multi-signature arrangement for shared holdings. Splitting reduces dependence on any single failure mode.
Q: Does insurance cover custody risk?
A: Coverage varies and commonly addresses specific perils such as key theft under defined conditions, subject to limits and exclusions. It is not a general guarantee of customer balances, and the policy terms deserve the same reading as the custody agreement.