BC regulates asset segregation for virtual asset service providers | Finance

According to this resolution, asset segregation mechanisms and procedures must be documented in specific PSAV policies. At a minimum, this policy should provide for the segregation of customer and user virtual assets into a different virtual wallet from the wallet used for the provider’s own operations.

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In addition, the policy must establish the methods used to conduct preliminary testing and conduct an independent audit of the provider’s statements on a semi-annual basis.

The policy must also define when the transfer of virtual assets from a customer or user to another provider is necessary “due to circumstances involving an interruption or cessation of the provision of services by that institution.” Independent audit reports must be published on the PSAV website.

The standard also provides for the possibility for providers to maintain virtual assets held in the portfolios of their customers and users “solely for the purpose of covering the immediate liquidity needs for the execution of transactions by these customers and users.”

In this case, the assets must follow certain rules, such as being registered and identified through internal management systems, and cannot “impose burdens or burdens” on customers or users.

According to the regulations, providers will still be required to designate a board member or administrator responsible for asset segregation within their jurisdiction.