TrustCloud Vault: differences between qualified custody and digital asset storage

3 January, 2024
TrustCloud
Custody

Unlike the traditional process of archiving digital assets in the cloud, TrustCloud Vault’s qualified preservation ensures the highest levels of regulatory compliance, security, and legality for your company.

Fortified technology for digital transactions

ompanies need to keep evidence of every digital interaction to comply with the most demanding Anti-Money Laundering (AML) and data protection regulations globally.

TrustCloud’s solution to help companies adhere to regulations is Vault: a qualified custody service that functions as a secure repository for digital assets.

This specific module of the TrustCloud platform easily stores digital transactions and the assets generated in them. Moreover, it orchestrates and collects electronic evidence of all data and metadata generated throughout processes, securely storing them in an easily accessible Certificate of Evidence. At any time, proof generated can be retrieved from our module to demonstrate the integrity and identity of each piece of data. Avoid significant financial losses with TrustCloud Vault. Request a demo now.

TrustCloud Vault as a Qualified Trust Service Provider

In addition to operating under the parameters of all legal frameworks requiring the preservation of documentation for a specified period, TrustCloud is a Qualified Trust Service Provider (QTSP), according to the European eIDAS (electronic identification and trust services) regulation. This regulation establishes standards within the European Union for electronic identification and trust services for digital transactions. It facilitates the use of electronic identifications across the EU, legally recognizes electronic signatures, regulates digital seals and timestamps, and sets standards for the secure custody of electronic documents.

Digital assets are susceptible to manipulation. During legal proceedings, judges may refuse to recognize the evidential effects of a digital asset as an electronic document unless additional elements are provided to guarantee its integrity and authenticity. TrustCloud’s QTSP status implies that, in case of litigation, it is independent of the parties and may help shift the burden of proof. In case of a dispute regarding the authenticity of a digital asset, the service provides evidence to verify if the presented content matches that held by TrustCloud.

Our module protects and secures all types of files in any format (audio, video, images, etc.) in a tamper-proof environment. Thanks to its rigor and versatility:

It is a technical and legal ally for insurers, the gaming industry, banking, or real estate.
It prevents fraud, security breaches, and economic and reputational damage to companies.

Security and compliance: advantages beyond electronic storage

According to a Deloitte study published in February 2023, financial institutions received over 5 billion dollars in fines during 2022 for breaches and non-compliance related to AML and KYC (Know Your Customer). The lack of informed consent regarding the management of personal data, failures in the security of identity verification systems, insufficient controls against money laundering for clients in high-risk countries, deficiencies in banks’ transaction monitoring systems, and shortcomings in due diligence processes and procedures for investigating suspicious payments are the main reasons authorities impose these sanctions.

Other industries, such as insurance, real estate, or communications, also accumulate significant fines for security protocol and information storage defects. TrustCloud Vault is the perfect ally to combat these situations.

Furthermore, our proposal is not just a file storage and management system; it brings together a series of advantages that differentiate it from simple digital storage.

Integrity and authenticity: One of the most notable advantages of qualified custody is the ability to unequivocally know the identity, integrity, and authenticity of each record. While storage may be susceptible to alterations or doubts about the authenticity of files, qualified custody uses advanced technologies to ensure that each safeguarded document is genuine and has not undergone unauthorized changes.
Timestamps: Vault incorporates measures that credibly certify the times of document creation. This is crucial not only for establishing an accurate chronological record but also becomes a valuable tool in case of litigation, supporting the chronological sequence of digital events.
Data deletion: Qualified custody establishes strict control to prevent the unwanted deletion of files by a user, providing an additional layer of security and preventing any unforeseen actions.
Compliance: As a Qualified Trust Service Provider, Vault has the ability to issue custody certificates that allow accrediting regulatory compliance. From the requirements of SEPBLAC (Executive Service of the Commission for the Prevention of Money Laundering and Monetary Offenses) in Spain to the eIDAS compliance mentioned above or GDPR (General Data Protection Regulation) in Europe, qualified custody is the key to effectively meeting the strictest regulations, as well as the path to being prepared for new laws and updates.

The omission of a robust qualified preservation system for digital assets by companies carries risks such as increased exposure to threats and loss of critical data, the risk of unauthorized access to documents and data, breaches leading to significant fines and restrictions, a negative impact on customer and partner trust, threats to business continuity, and difficulties in recovery.

By choosing TrustCloud Vault custody, companies not only safeguard their digital transactions and all the data and metadata generated in each procedure but also strengthen their position in legal disputes, ensure an unalterable digital environment, and reinforce trust in digital processes such as electronic signatures or video identification.