The rising popularity of crypto assets often comes with questions about how to securely store them. In this article, we’ll discuss what a crypto custodian is, the types of crypto asset storage, and the regulations for custodian institutions in Indonesia.

According to Investopedia, a crypto custodian is a third-party storage and security service provider for crypto assets. These services are offered to a wide range of investors, from institutional to independent investors who own large amounts of crypto assets like Bitcoin or other assets.

Crypto custodian storage systems combine two types of technology: hot wallets, which are connected to the internet, and cold wallets, which are not.

Types of Custodians


Self-custody is a type of crypto asset storage that gives investors full control over their crypto through a private key and a unique code that grants access to their holdings. Self-custody can be implemented through software wallets, including desktop, mobile, online variants, or through hardware wallets that secure the private key within a physical device.

The advantages and risks associated with self-custody storage include:


  • Absolute control over your digital assets.
  • Elimination of third-party risks.


  • The responsibility of safeguarding the private key.
  • Potential loss of assets if the private key is lost or forgotten.

Third-Party Custodian

For those seeking the highest level of security and convenience, third-party custodians offer a robust solution. This option appeals to institutional investors, such as asset managers, offering hot wallets for quick access and cold wallets for higher security.

The advantages and risks of third-party custodians include:


  • Professional management and security of digital assets.
  • Regulatory compliance and insurance protection.


  • Dependence on the custodian’s security measures.
  • Potential access restrictions imposed by the custodian.

Security Costs

Using a third-party custodian involves various fees, including custody fees, setup fees, and withdrawal fees. Although these fees may be a consideration, they are often viewed as worth the provided security, especially for large or institutional investors.

Making the Right Choice

The decision between self-custody and third-party custodians depends on several factors:

  • Self-custody is suitable for those confident in securing their private key and having full control over their digital assets.
  • Third-party custodians are ideal for investors seeking professional-level security for their assets, especially in significant amounts.

Indonesia has its crypto asset custodian institution, PT Kustodian Koin Indonesia (ICC), officially operating in Indonesia. It was approved as a Crypto Asset Storage Management Institution through the Decision of the Head of the Commodity Futures Trading Regulatory Agency Number 02/BAPPEBTI/SP-PTPAK/12/2023.