LEARN / UNDERSTAND / CHOOSE

Learning resources

Custody choices, historical examples and sourced learning notes. This is not a recommendation to invest.

IFINANCIAL REALITY

In some countries, deposit withdrawals and transfers have been restricted.

Having a balance in your bank account does not always mean you can withdraw it freely, whenever you choose.

The circumstances and causes differed in each country. Here are two cases documented in published sources.

2019Lebanon

As the financial crisis deepened, severe restrictions were placed on bank withdrawals and transfers abroad. Many people with money in their accounts could no longer use it freely.

Verified facts and sources

From around November 2019, with no formal capital-control law in place, the financial sector imposed its own informal limits on withdrawals and transfers (World Bank, 2024).
In its 2023 staff report, the IMF noted that informal restrictions on deposit withdrawals were still in place.
Separately from access, the local currency lost about 98% of its value from 2019 onward, sharply reducing the value of deposits (World Bank, 2024).

Checked November 8, 2026.

2013Cyprus

In response to a banking crisis, temporary restrictions on moving money were introduced. As the banks were restructured, some depositors also bore losses.

Verified facts and sources

After the bank restructuring was announced on March 16, 2013, banks closed and reopened on March 28. Capital controls, including limits on transfers abroad, were introduced when they reopened (European Commission, May 2013).
The controls were eased in stages and fully lifted in April 2015 (European Stability Mechanism).
Restructuring the two largest banks required contributions from uninsured deposits. At Cyprus Popular Bank, uninsured deposits stayed with the legacy entity being wound down; at Bank of Cyprus, 37.5% of uninsured deposits were converted into shares. Insured deposits were protected (European Commission, May 2013).

Checked November 8, 2026.

These are past events in other countries. They do not predict that something similar will happen in Japan, and they do not suggest that cryptocurrency is safer than bank deposits or that anyone should move their savings into cryptocurrency.

IIUNDERSTANDING

01The question

It’s your money.
What if you suddenly couldn’t use it?

You keep money in the bank.
You check your balance in an app.
You send money when you need to.

For most of us, this is completely ordinary.

But what if, one day, you could still log in—yet couldn’t send anything?

It’s your money, but moving it isn’t your decision alone.

Situations like this have really happened around the world.

Cases: Lebanon (2019) and Cyprus (2013)Each had its own background and causes.

02Why

Why does this happen?

Assets held at a bank or exchange are managed within that institution’s own systems and rules.

Knowing your password does not mean you can operate those systems yourself.

Being able to log in is not the same as directly controlling your assets.

Who decides that a transfer happens?

Approving in your own wallet

You
Sign with your private key
The blockchain

The transaction is approved by you

Learn more: how bank deposits work

Legally, a bank deposit is a claim against the bank for repayment. You are the creditor and the bank is the debtor, and the bank is obliged to repay you.
A deposit is generally a contract under which the bank may use the money—for lending, for example—and must repay the same amount. The bank is not storing specific banknotes for you.
Under Japan’s deposit insurance system, eligible ordinary deposits are protected up to ¥10 million in principal plus interest per depositor per institution, and payment deposits are protected in full.
Withdrawals and transfers take place under conditions set by the bank’s procedures and operating status, and by laws or measures taken by the authorities.

Deposit insurance scope and sources: Learning resources

Learn more: exchange custody and customer protection

Logging in to an exchange app confirms your identity so you can use the service. The private keys that approve transfers on the blockchain are usually managed by the exchange.
The balance in your app shows your entitlement to assets held in wallets the exchange controls. What that entitlement covers is set by the terms of service and the law.
Registered crypto exchanges in Japan are legally required, among other things, to keep customers’ assets separate from their own and, in principle, to hold them offline.
Bank deposit insurance does not apply. Whether, and on what terms, you can withdraw depends on the terms of service, the operator’s situation and applicable law.

03Another way

The option to manage it yourself.

With cryptoassets, you don’t have to leave everything on an exchange. You can also hold them in your own wallet.

If you manage your own private keys, you approve transactions yourself, without asking an exchange to send for you.

Of course, you also take on more responsibility—for lost keys, mistaken transfers and more.

What you can do

Approve transfers yourself, without going through an exchange
Hold supported cryptoassets in your own wallet

What you take on

Keeping your keys and recovery information safe
Checking addresses and networks before sending
Watching out for scams and phishing

Each of these can be learned—by understanding how it works and practising.

Self-custody applies to supported cryptoassets. It does not replace a bank account, avoid every restriction, or make your assets automatically safer.

Learn more: what self-custody covers, and your responsibilities

A private key is the information used to sign (approve) transactions on a blockchain. A recovery phrase restores that key, and anyone who learns it may be able to move your assets.
What you control is whether a transaction is signed. Some things keys cannot decide: network rules, fees and congestion, and—for some tokens—features such as freezing set by the issuer.
No public scheme reverses or compensates losses from lost keys or recovery phrases, mistaken transfers or scams. Assets sent over an unsupported network may not be recoverable.
COMPASS never asks for, or holds, your private keys or recovery phrase.

04Your choice

Leave it to others without knowing,
or understand and choose?

The answer is not to stop using banks or exchanges.

What matters is understanding how they work—and knowing how to manage assets yourself, too.

From having to delegate, to being able to choose.

COMPASS is where you learn the knowledge and practical skills to get there.

Don’t leave your assets entirely in someone else’s hands.

WALLET SKILLS

One-to-one lessons in wallet setup, sending, receiving, and the principles of backup and recovery—hands-on, on your own device. It is an educational service, not an investment product or asset-management service.

View Wallet Skills free consultation (LINE)

This is a general explanation of how these options work. It does not suggest that problems at banks or exchanges are inevitable or that any one option is safer than another, and it is not legal or investment advice for your individual situation.

04 / BUILD YOUR UNDERSTANDING

Understand the differences
before choosing.

Bank deposits, exchanges and self-custody involve different protections and responsibilities. The aim is not to declare one option “completely safe,” but to give you a sound basis for your own decisions.

Bank deposits and digital assetsThey do not have the same protections.

In Japan, eligible general deposits are protected up to ¥10 million in principal per depositor, per financial institution, plus eligible interest up to the failure date. Eligible payment/settlement deposits meeting all three requirements—non-interest-bearing, payable on demand and providing payment services—are fully protected. Some deposits, including foreign-currency deposits, are excluded. Crypto assets do not have the same deposit insurance; immediate access and asset value are not guaranteed.

Financial Services Agency: deposit insurance (Japanese)

Exchange custody and self-custodyWho manages the keys changes your responsibilities.

An exchange holds/trades assets through its service; withdrawals depend on its procedures and systems. With self-custody, you manage the private keys and authorize transfers. You also take responsibility for loss of keys, scams and mistaken transfers. Exchange protections vary by country, provider and contract. Self-custody does not remove network problems or restrictions imposed by services you use.

Financial Services Agency: information for crypto users (Japanese)

Hardware walletsBuying a device and using it appropriately are different steps.

A hardware wallet is a tool for managing supported private keys on a dedicated device. It does not, by itself, prevent scams, mistakes or loss of backups. Learn to check authorized purchasing channels, inspect the device, initialize it yourself and verify what it displays. This resource does not imply that COMPASS is a manufacturer’s dealer or partner.

Manufacturer reference: Trezor FAQ

Private keys and recovery phrasesKeep control of them yourself.

Supported wallets use backup phrases or other backup methods for recovery. A third party who obtains the necessary secrets may be able to control the assets. Do not send them to an instructor or someone claiming to be support, or expose them in photographs or screen sharing. Check the genuine device/wallet documentation for its supported backup method and recovery procedure.

Manufacturer reference: scams and phishing

Transaction-checking habitsConfirmed transfers generally cannot be reversed.

Check the supported asset and network, recipient, amount, fees and transaction status. Transactions confirmed on-chain generally cannot be cancelled, and recovery from a mistaken transfer is not guaranteed. Review the recipient service’s conditions and authorize the action yourself.

ethereum.org: How to use a wallet

Access, rights and valueA right to repayment is different from immediate access.

A bank/service outage, device failure or network congestion can affect access. Even with a right to repayment or protection under a scheme, restoring access may take procedures and time. Crypto brings other risks, including price volatility and private-key management. This is not a recommendation to move bank savings into crypto.

ethereum.org: How wallets work