Do you really think if you’re holding your crypto on some exchange that suddenly becomes insolvent it’s going to make a difference if a paragraph to that effect appears in the ToS or not? Good thing Mt Gox or QuadrigaCX didn’t have a paragraph like that in their ToS otherwise everybody with assets in either exchange would have been really fscked, right?

You’re fscked no matter what. At least Coinbase is calling your attention to it.

Don’t hold your crypto on the exchange, any exchange, full stop. Even the largest crypto exchange CEOs will tell you that.

But if you’re one of those people for whom this is something to be up in arms about, I’ve got news for you:

Your governments have already laid claims to your savings

Remember back to 2013 with the Cyprus bail-in, which I always maintained was what put Bitcoin above $100 USD for the first time:

The Cypriots had a portion of their savings accounts confiscated to re-capitalize their failing banking system. In March 2013 Eurogroup president Jeroen Dijsselbloem told interviewers that Cyprus would serve as a template for future bank restructurings in the euro zone.

In the US, provisions for depositor bail-ins existed even before Cyprus, with the “Statutory Bail-Ins” provisions in the 2010 Dodd-Frank bill.

The fact is, if you’re living in any of the largest economies globally, then your country is party to a supra-national agreement on “flexible bank bail-in bonds” put in place at the G-20 Brisbane Summit in 2014.

We’re in an age where your assets and savings are considered fair game for everybody else, either as guilt-by-association with somebody else’s political ideology, or as retaliation for government actions you had no involvement with.

Holding a portion of your wealth in Bitcoin and properly custodying it solves both problems.