The Deposit Guarantee Scheme (hereinafter referred to as the “DGS”) is applicable across almost all countries of the European Economic Area (hereinafter referred to as the “EEA”). DGSs are governed by the Deposit Guarantee Schemes Directive (hereinafter referred to as the “DGSD”, “Diretrive”) – it applies and insures only deposits held in banks and credit unions (hereinafter referred to as the “Credit Institutions”) and liabilities of banks, brokerage firms, management firms that have the right to provide investment services to investors.
Valyuz UAB is a company registered in Lithuania (a European Union member state) with a company code 304782929 and with a registered address at Gedimino Av. 44A-201, Vilnius, Lithuania (hereinafter referred to as the “Company”, “Valyuz”). 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) authorized and regulated by the Central Bank of Lithuania (hereinafter referred to as the “BoL”). The BoL is subject to the regulation of the European Central Bank (hereinafter referred to as the “ECB”).
Under the Lithuanian Law on Insurance of Deposits and Liabilities to Inventors, EMIs do not fall under the DGSD regulations. It means that deposits held in the EMIs are excluded from protection under the Directive..
However, all EMIs, including Valyuz, require safeguarding accounts, opened with a licensed EEA Credit Institution or a central bank, to hold their client’s funds.
A safeguarding account is a special kind of segregated account. With a safeguarding account, as in any segregated account, clients’ funds are kept separate from Valyuz operational funds.
According to the applicable laws and regulations, a safeguarding account is intended exclusively for safeguarding and administration of funds received by Valyuz from the electronic money holders and/or payment service users, i.e. its clients. Clients’ funds held in the safeguarding account remain the ownership of the electronic money holders and/or payment service users, and no execution may be levied on such funds according to the debts of Valyuz.