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Account types

This article explains the two-account type model integration and outlines the differences between a Normal account and a Custody account.

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Why are there two account type options?

Recently we have introduced two separate account types, in light of changes to our services relating to the upcoming Markets in Crypto Assets Regulation (MiCAR). To continue operating your Coinmerce account in the future, we kindly request you to select your preferred account type. The two distinct account types are the Normal account and the Custody account. These options are designed to align with varying client preferences and the evolving regulatory environment.

What is the difference between a Normal account and a Custody account?

With a Normal account, you by default participate in the Earn Program and therefore consent to lend a portion of your eligible crypto-assets to Coinmerce Earn in order to generate Rewards, which are paid out to you on a weekly basis. There is no monthly cost associated with operating a Normal account, and you are charged a competitive Exchange fee of 0,25% on all buy, sell and swap orders.


With a Custody account, your crypto-assets are exclusively safekept in Foundation wallets. The wallet-infrastructure used for Custody accounts prioritises the security of the crypto-assets under custody, and for this purpose utilises cold storage (i.e. offline wallets). Clients opting for a Custody account are not eligible to participate in the Earn Program. This means you won't lend a portion of your eligible crypto-assets to Coinmerce Earn and won't receive any Rewards in return. In the case of a Custody account, we charge a flat Subscription fee of €1 per month, and an additional 1% annual Custody fee is applied to accounts with a Crypto Balance value of €10.000 or more, which will be deducted on a monthly basis. Due to the increased operational and settlement complexities associated with Custody accounts, you will be charged an exchange fee of 0,50% on all buy, sell and swap orders.

Can I change my account type after making a choice?

Yes, it is possible to change from one account type to the other. However, after you've changed it once, you won't be able to revert to your initial choice without contacting the support department. If you still have any doubts about your selection, please get in touch with Support.


What happens if I don’t actively make a choice?

To continue operating your Coinmerce account in the future, we require you to first select your desired account type. Should you not make a choice within 6 weeks of the initial notification, we will provisionally set your account type to Normal. You'll remain the option to switch to a Custody account.


Are there any risks associated with the Earn Program?

Yes, participation in the Coinmerce Earn Program involves several risks. As with all cryptocurrency activities, a primary risk is market volatility, meaning the value of crypto-assets can fluctuate significantly and rapidly, potentially leading to a decrease in their value.


Furthermore, when you participate in the Earn Program, the crypto-assets that are borrowed from you by Coinmerce Earn may be used for either on-lending to third party borrowers or staking with staking partners. These activities introduce additional risks. Coinmerce Earn diligently monitors and assesses the third parties involved in the Earn Program to mitigate these risks. However, these risks cannot be entirely eliminated.


It is crucial to understand that by participating in the Earn Program, you are exposed to inherent risks, which could result in a partial or total loss of your crypto-assets.

For a comprehensive understanding of all applicable risks, please refer to the Risk Disclaimer Normal Account and the Earn Terms and Conditions. We strongly advise all clients opting for a Normal account to read these documents carefully.

Can I still earn Rewards when I opt for a Custody Account?

No. The Custody account type is meant exclusively for secure crypto-asset storage. You cannot participate in the Earn Program, nor will you be eligible to receive any Rewards.


How do I select or change my account type?

You will be guided through a step-by-step selection flow when you log in to your Coinmerce account. Changing your account type will be possible within your settings in your Coinmerce account, commencing the 30th of June 2025.

What happens if my Custody Account balance drops below €10.000?

If your monthly average Crypto Balance value drops below €10.000, the 1% annual Custody fee will no longer apply. The €1 monthly Subscription fee will still apply, regardless of the balance of the account.


How is the 1% custody fee calculated and charged?

The fee is calculated based on a daily snapshot of your Crypto Balance value and charged on a monthly basis. It is first deducted from your Euro Balance, and subsequently from your largest crypto holding if your Euro Balance is insufficient.


Can I still withdraw or deposit assets with both account types?

Yes, deposits and withdrawals work the same for both account types.


Are my assets safer with a Custody Account?

Both account types follow strict security protocols. However, with a Custody account, your crypto-assets remain segregated using Foundation wallets at all times and are for this reason not used for the Earn Program, offering an extra layer of protection against third-party risk and online vulnerabilities that are present when you opt for a Normal account.

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