Whether you operate on Young Platform Base or Young Platform Pro, the crypto you have in your account always remains in the same Young Platform digital vaults. This service is called custody and is governed by Article 75 of the MiCAR regulation.
The main rules
- Segregation: your crypto is kept separate from Young Platform's own assets. If Young Platform were to face financial difficulties tomorrow, your crypto would not end up in the creditors' pot: it's yours, period.
- Internal ledger: there is an accounting register that keeps an exact track of how much belongs to each customer. Every time you buy or sell, the register is updated.
- Secure technological wallets: crypto is stored using specific technologies (fractional keys, specialised technological custodians) to protect it from cyber theft.
Please note: custody does not eliminate market risks
The value of crypto can rise or fall by as much as 50% in a single day. Custody means that your crypto is physically/digitally secure, not that its value is guaranteed.
Is crypto guaranteed like bank deposits?
No. Crypto is not covered by the Interbank Deposit Protection Fund (which protects current accounts up to €100,000) nor by the National Guarantee Fund (which protects investors in financial securities). The European MiCAR regulation requires all authorised platforms to state this clearly.
This doesn't mean your crypto is less protected from theft or Young Platform's bankruptcy — custody with segregation protects you from that. It means that the value of crypto is not guaranteed by anyone: if it goes down, it goes down.
It is important to highlight, however, that Young Platform has taken out insurance policies aimed both at protection against cybersecurity risks and at the protection of assets held in custody.