Are my funds save with Valyuz?

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The Deposit Guarantee Scheme (hereinafter referredto as the “DGS”) is governed by the Deposit Guarantee Schemes Directive(hereinafter referred to as the “DGSD”, “Directive”), which isapplicable across almost all countries of the European Economic Area. TheDirective is applied and provides insurance only to deposits held in banksand credit unions, including liabilities of banks, brokerage firms, managementfirms that have the right to provide investment services to investors.

Please be noted that Valyuz UAB is a company, registered in Lithuania with a company code 304782929 and with a registered address at Gedimino Av. 44A-201,Vilnius, Lithuania (hereinafter referred to as the “Company”, “Valyuz”) is not considered neither a bank or investment service provider as per above.

Valyuz is an Electronic Money Institution (hereinafter referred to as the“EMI”) (EMI license No. 34: https://www.lb.lt/en/licences-1/view_license?id=450), which is licensed and supervised by the Bank of Lithuania. Under the Lithuanian Law on Insurance of Deposits and Liabilities to Investors, EMIs do not fall under the DGSD regulations. It means that deposits held in the EMIs are excluded from protection under the DGS, i.e., the DGS protection is not applicable to funds held within Valyuz. However, all EMIs, including Valyuz, are obliged to maintain clients’ funds safeguarding accounts with licensed credit institutions within EU (i.e., bank, credit union). The safeguarding account is a special kind of segregated account, where funds of Valyuz’s clients are held separated from Valyuz own operational funds. Such infrastructure ensures that Valyuz’s clients’ funds held in the safeguarding account remain the ownership of the clients and no execution may be levied on such funds according to the debts of Valyuz (i.e.,in the event of Valyuz insolvency).

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