Custody has long been seen as a technical issue centred on
private keys, wallet security, and infrastructure design. The
EU's Markets in Crypto-Assets Regulation ("MiCA")
takes crypto-custody further. It is defined by control,
safeguarding, and liability, not technology alone. Crypto-Asset
Service Providers ("CASPs") must balance cryptographic
security with governance, compliance, and accountability.
Custody under MiCA is defined as: "safekeeping or
controlling, on behalf of clients, of crypto-assets or of the means
of access to such crypto-assets, where applicable in the form of
private cryptographic keys". Custodians are responsible for
protecting, segregating, reconciling, and recording crypto-assets
accurately.
