Hosted Wallet
A Hosted walletA wallet is a device (a hardware device, a program, or servi... More is an online service where a user’s bitcoins are stored by a third party (e.g., a cryptocurrency exchangeA cryptocurrency exchange is a business that allows customer... More.)
In their Interpretive Letter #1172, the Office of the Comptroller of the Currency (OCC) defines a hosted wallet as “an account-based software program for storing cryptographic keys controlled by an identifiable third party. These parties receive, store, and transmit cryptocurrencyA cryptocurrency (or crypto currency) is a digital asset des... More transactions on behalf of their accountholders; the account holder generally does not have access to the cryptographic keys themselves.” Thus, users consequently do not have direct control over their funds.