Security Mechanisms of TCEX Fiat Custody Account
Under the regulatory framework of Resolution No. 05/2025/NQ-CP of the Vietnamese Government regarding the pilot operation of the crypto asset market, Techcom Crypto Exchange (TCEX)—as a pilot platform relying on the commercial banking and securities ecosystem of Techcombank and TCBS—adopts strict “bank-grade segregated custody” and multi-layered compliance security mechanisms for its Fiat Custody Account.
I. Vietnam crypto exchange TCEX Core Security Architecture
1. Account Segregation & Bankruptcy-Remote Custody
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Independent Custodian: Users’ fiat currency (VND) funds on the TCEX platform are not deposited directly into the exchange’s operational accounts, but are instead held in dedicated third-party custody accounts (Escrow / Nominee Account) at a licensed commercial bank (such as Techcombank).
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Bankruptcy Isolation: Custodial funds are completely segregated from the exchange’s own corporate funds. Even if the platform faces operational risks or bankruptcy, users’ fiat assets remain unaffected by the platform’s liabilities.
2. Real-Time Reconciliation & Clearing
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API-Level Data Synchronization: The exchange’s matching engine and the custodian bank’s ledger system are integrated in real time via encrypted APIs, enabling real-time clearing for every fiat deposit, transaction debit, and withdrawal.
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100% Full-Reserve Ratio: The custodian bank strictly maintains a 1:1 fiat reserve ratio, preventing the platform from misappropriating custodial fiat through reinvestment, rehypothecation, or lending.
3. Integrated AML & KYC Gateway
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Bank-Grade KYC Verification: Fiat deposits and withdrawals are strictly restricted to “same-name bank accounts.” The holder’s name on deposit/withdrawal bank accounts must match the verified identity (KYC) on TCEX to prevent account rental or money laundering.
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Smart Suspicious Transaction Monitoring (STR/AML): Integrated with anti-money laundering monitoring engines that comply with the requirements of the State Bank of Vietnam (SBV) and regulatory frameworks, enabling real-time risk alerts and freeze reviews for abnormal large-value transactions and high-frequency transfers.
4. System-Level Security & Access Authorization
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Multi-Authorization Controls: Large-value fund transfers from the custody account (such as batch clearing or large withdrawals) require dual-authorization approval from both the exchange and the custodian bank, combined with HSM (Hardware Security Module) encrypted command signing.
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Security Audits & Periodic Disclosures: Pursuant to Resolution No. 05/2025/NQ-CP, TCEX must undergo regular special audits of its custody accounts by independent third-party accounting firms and regulatory bodies, as well as publicly disclose asset transparency reports to the market.
II. Summary of Fiat Custody Security Mechanisms
| Security Dimension | Mechanism & Measures | Risk Mitigation Goal |
| Fund Storage | Independent third-party escrow at a commercial bank | Prevents fund misappropriation and protects against platform bankruptcy claims |
| Deposit/Withdrawal Control | Mandatory same-name bank account binding and two-way verification | Prevents unauthorized withdrawals, money laundering, and third-party deposits |
| Command Signing | Bank-enterprise multi-signature authorization & HSM key management | Prevents internal misconduct and single-point system compromise |
| Transparency | 1:1 reserve reconciliation & periodic regulatory audits | Ensures fiat currency reserve adequacy and regulatory compliance |