What is the difference between custodial and non-custodial wallets?

Custodial wallets are managed by a third party, while non-custodial wallets allow users to maintain control over their private keys.

How can I ensure compliance for a non-custodial wallet?

Compliance can be ensured through user education, clear terms of service, and implementing KYC/AML processes where applicable.

What security measures are recommended for non-custodial wallets?

Implementing strong encryption, backup solutions, and secure key management practices are essential for non-custodial wallets.

MiCA · Non-Custodial Wallet

Germany Non-Custodial Wallet — Compliant Development

Launch a non-custodial wallet in Germany with compliance controls mapped to BaFin and MiCA. Block Intelligence builds production software; independent counsel handles licensing.

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Compliance scope

Germany · Non-Custodial Wallet

Germany supervises crypto-asset service providers under MiCA through Federal Financial Supervisory Authority (BaFin). Firms offering exchange, custody, advisory, or other CASP services must obtain authorization and meet prudential, governance, and AML requirements before serving clients in the EU.

Jurisdiction	Germany
Regulator	BaFin
Product	Non-Custodial Wallet

Software

Built-in compliance controls

Self-custody key generation and secure backup flows
WalletConnect / chain signing with transaction simulation
Optional KYC-gated features for regulated on-ramps
Phishing protection and address allowlisting
Privacy-preserving analytics for product ops (not user PII)
User education on key management and security practices
Optional KYC/AML compliance features for high-risk transactions
Secure backup solutions for wallet recovery
Audit logs for transaction history and user activities

View Non-Custodial Wallet service Related case study

Block Intelligence provides technology development and compliance-oriented software architecture. We are not a law firm. Licensing and regulatory advice is provided by independent legal partners in each jurisdiction. Information is current as of 2026-03-01 and subject to change.

FAQ

Frequently asked questions

What is the difference between custodial and non-custodial wallets?: Custodial wallets are managed by a third party, while non-custodial wallets allow users to maintain control over their private keys.
How can I ensure compliance for a non-custodial wallet?: Compliance can be ensured through user education, clear terms of service, and implementing KYC/AML processes where applicable.
What security measures are recommended for non-custodial wallets?: Implementing strong encryption, backup solutions, and secure key management practices are essential for non-custodial wallets.