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Is Crypto.com Earn Safe?
In this section of our Crypto.com Earn review, we will be looking at the management, the legal setup as well as the terms and conditions of the Crypto.com Earn feature.
Who leads the team?
Crypto.com is led by the CEO and Co-founder Kris Marszalek who has been engaged with various startup companies from Hong Kong in the past. Crypto.com is also based in Hong Kong.
The Crypto.com website seems to be frequently changing the name of their legal company. Currently, the company is operating under the FORIX DAX KY Group which is incorporated in the Cayman Islands.
The group is also known to operate under MCO Malta DAX Limited, Foris LTD, MCO Pay Limited, MCDO Digital Assets, Foris Asia Pte Ltd.
The platform doesn’t publicly share the address of their headquarters. According to some sources, Crypto.com is based in Sai Wan, Hong Kong Island, Hong Kong.
Our guess is that Crypto.com used their entity in the Cayman Islands to generate the CRO token. Their branch in Switzerland was used to raise $26 M through their token sale event.
Crypto.com restricts the usage of their service to residents of countries where they have some legal setup such as Malta, Switzerland, and Hong Kong (onshore).
What regulatory requirements should you consider?
You can use Crypto.com in all countries apart from Switzerland, Hong Kong, Malta and the state of New York.
We are not aware of any license from a regulatory body which would decrease the counterparty risk. Crypto.com as many othe crypto platforms are “self-regulated”, which means that they are following the highest security standards to ensure safe usage of their products.
According to Crypto.com, the platform stores all fiat from U.S. users on regulated custodian bank accounts. If you are from the U.S., your fiat is covered up to $250,000 by the FDIC.
While for fiat, you as the user remain the owner, for crypto it’s not the case if you store your currencies on the Crypto.com App wallet.
In this scenario, the owner of your coins is Crypto.com which stores your coins on a cold storage which is insured up to $360 M. The custodian of your crypto is Ledger.
Are there any suspicious terms and conditions?
Read more: Crypto.com Earn Review – Banks.com
You should certainly read the terms and conditions of Crypto.com Earn to fully understand your rights.
We read it all, and here are a few important points worth mentioning:
- By using the Crypto.com Earn Fix Plan, you are not able to withdraw your crypto before the maturity date
- The interest for your Flexi Plan may change at any time
- You alone are responsible for the taxes
- Crypto.com reserves the right to terminate your access to Crypto Earn
- The digital assets in your Crypto Earn account are not protected by any insurance
- Crypto.com can amend the terms and conditions at any time
- Crypto.com may freeze your account for an indefinite period of time
By using Crypto.com Earn you are accepting the clause that you might lose your money and that Crypto.com isn’t responsible for your losses.
That is the case with any peer-to-peer lending platform or crypto lending platform. By investing your fiat or coins you are always taking certain risks.
If your goal is to keep your crypto safe, we recommend storing your crypto on a hardware wallet like 🔒 Trezor , which is one of the best wallets out there.
Find more: Crypto com earning – Krypto-NFTs