We will be migrating our custodial customer accounts from the UK to the European Union, namely to Lithuania on March 1, 2022.
Our aim is to ensure that the migration process is frictionless for our custodial customers and that you will be able to continue using GateHub services as normal.
Why are we migrating from the UK to the European Union (Lithuania)?
We believe that we must always follow the best interests of our customers and the company. Operating in a business-friendly environment, with a clear regulatory framework is one of the foundations of our business. We decided to move part of our business operations (custodial customer accounts) from the UK to Lithuania because we see the Lithuanian ecosystem as fintech and crypto-friendly.
We are also closely monitoring the process of adopting EU legislation, which will cover crypto-asset services (Markets in Cryptoassets Regulation - “MiCA”) and a new regulatory framework for anti-money laundering. We believe that the new EU regulatory framework applicable to GateHub’s business operations will ensure the integrity of the whole industry which will be mostly beneficial to our customers.
What entity will my custodial account be transferred to?
Your custodial account will be transferred from GateHub Ltd. (UK) to GateHub UAB (Lithuania). GateHub UAB has all required regulatory authorisations to provide crypto services from Lithuania.
GateHub UAB is regulated by the Bank of Lithuania and the Financial Crime Investigation Service (FCIS).
Non-custodial services will continue to be provided by GateHub Ltd.
What are the legal consequences of this migration?
GateHub UAB does not operate under UK law and is not within the jurisdiction of the Financial Conduct Authority (UK regulator). Cryptoassets in your custodial account will be held in Lithuania (European Union), outside the United Kingdom.
Customers whose assets are moved from our UK-based entity will not have access to the benefits of the UK’s Financial Ombudsman Service or benefit from the Financial Services Compensation Scheme.
After the migration comes into effect on March 1, 2022, Lithuanian regulation will apply to GateHub UAB.
What do I need to do in this migration process?
What if I don’t agree with the migration of my custodial account?
If for whatever reason you do not want us to move your custodial account to GateHub UAB, you can close your GateHub account. As part of the closing process, you will need to withdraw your crypto assets held on your custodial account before March 1, 2022.
If you do not close your account before March 1, 2022, your account will be automatically migrated to GateHub UAB to ensure the continued safekeeping of your crypto assets.
You will also be able to close your account any time after the migration, in accordance with the terms and conditions.
What will happen on March 1, 2022, after the migration becomes effective?
On March 1, 2022, (00:01), all custodial customer accounts and assets of GateHub and GateHub Fifth gateways will cease to operate as they will have been migrated to the GateHub UAB gateway, which operates under the laws of Lithuania.
Will there be any changes for deposits of fiat funds to my account?
Yes, the banking details which are displayed for deposits to your GateHub account will change with the migration. We will let you know of this change in advance so you are properly informed before making any future bank transfers to your GateHub account.