Written by Lydia Pallot
How Skrill Protects your Crypto
Whether you are new to crypto or have been following the crypto market since the original Bitcoin Whitepaper dating back to 2009, Skrill supports you in providing an easy-to-use app where you can buy, sell interest in crypto, and withdraw crypto.
The crypto market is a volatile one, which is why it is important to know that who you purchase your crypto with is protecting your assets. In terms of volatility, if we look back at Q1 2023, several ‘black swan’ events caused knock-on effects to the crypto market. Notable examples include the banking crisis in March that saw 3 U.S. banks collapse within weeks of each other, and the de-pegging of the USDC stablecoin from the dollar.
Overall, these events led to a drop in market capitalization across the gambling, yield aggregator, lending, and borrowing sectors. As a result, investors fled to safer assets, causing a rush towards larger assets such as bitcoin and ether. Additionally, in spite of the hectic end of 2022, Q1 2023 overall showed bitcoin surging 70% which outperformed all major US indexes to become the top performing asset class of the quarter.
Through all the turbulence, which understandably can trigger uncertainty, at Skrill let us share with you how we prioritize protecting your assets and answer some of the key questions you might have when looking to protect your assets.
Do I own my bitcoin on Skrill?
As a Skrill customer you can convert your wallet balance, so your local fiat currency (EUR, GBP, USD, etc.), is converted into holding an interest in a cryptocurrency of your choice. Skrill isn’t a crypto exchange, instead we partner with cryptocurrency exchanges to provide this service.
Does Skrill lend out my bitcoin?
We never let another individual or third party borrow or earn interest on your bitcoin, or any other cryptocurrency you have purchased an interest in via Skrill. This means you have full access and control of your portfolio.
Is it safe to store my crypto with Skrill?
At Skrill, our belief is always to put the consumer first. The four key aspects below are just some of the measures we take to ensure your assets are protected.
1. Compliant
As a registered Virtual Asset Service Provider (VASP), including licenses in Ireland and Italy, Skrill complies with stringent consumer verification requirements in compliance with anti-money laundering laws (AML5).
Highlighting further our commitment to regulation and our public market profile, Skrill is also a registered crypto asset firm with the FCA. Not only that, but Skrill was also one of the first companies to register with the FCA, showing our commitment to complying with regulatory requirements.
In addition, Skrill is one of the subsidiaries of The Paysafe Group, where Paysafe Financial Services Limited is authorized and regulated by the FCA pursuant to the European Communities (Electronic Money) Regulations 2011 for the issuance of electronic money and provision of associated payment services. Thus, showcasing the commitment to be transparent and to take a robust approach towards risk management and consumer protection.
2. Fund security
All crypto is 100% asset backed. Skrill will never do anything with customer funds unless instructed directly by the customer. Equally, Skrill doesn’t offer any leverage products or lend customers any type of funds or assets.
3. Audited operations
As a regulated entity, Skrill is subject to consistent independent audits on our financial positioning, security systems, IT infrastructure, and insolvency safeguards among others.
4. Customer support
Our customer service team is here to support you in case you have any questions. Plus, our FAQs offer a speedy way to answer any questions you might have.
