Asset Self-Custody

Definition ∞ Asset Self-Custody means holding your own digital assets without relying on a third party. This method grants individuals direct access to their private keys, which are essential for managing and transferring cryptocurrency holdings. It minimizes counterparty risk associated with centralized exchanges or custodians, providing complete sovereignty over digital wealth. This approach requires users to assume full responsibility for the security of their private keys.
Context ∞ The debate surrounding asset self-custody often centers on balancing user control with security responsibilities. Recent news frequently discusses regulatory proposals that could impact the ease or legality of self-custody solutions, influencing user adoption and the operational models of various digital asset platforms. This ongoing discussion highlights the tension between decentralization principles and regulatory oversight.