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Wallet provider

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Definition Edit

A wallet provider is

an entity that provides a virtual currency wallet (i.e., a means (software application or other mechanism/medium) for holding, storing and transferring bitcoins or other virtual currency). A wallet holds the user's private keys, which allow the user to spend virtual currency allocated to the virtual currency address in the block chain.[1]

Overview Edit

"A wallet provider facilitates participation in a virtual currency system by allowing users, exchangers, and merchants to more easily conduct the virtual currency transactions. The wallet provider maintains the customer's virtual currency balance and generally also provides storage and transaction security. For example, beyond providing bitcoin addresses, the wallet may offer encryption; multiple key (multi-key) signature protection, backup/cold storage; and mixers. All Bitcoin wallets can interoperate with each other. Wallets can be stored both online ("hot storage") or offline ("cold storage").[2]

References Edit

  1. Virtual Currencies: Key Definitions and Potential AML/CFT Risks, at 8.
  2. Id.

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