Crypto cards and neobanks: who holds your money?

Review and sources

Reviewed 2026-10-07 by CryptoLV Editorial. Next review: 2026-11-07.

• FDIC: Crypto-Asset Fact Sheet opens in a new tab

  Supports: FDIC deposit insurance applies to qualifying deposits at insured banks; it does not insure crypto assets or the failure of a nonbank crypto company.

• European Commission: Deposit Guarantee Schemes opens in a new tab

  Supports: EU deposit guarantee schemes protect eligible bank deposits up to EUR 100,000, with the national scheme and protected deposit types relevant to an account.

• Directive (EU) 2026/804 opens in a new tab

  Supports: From 11 May 2028, Member States must apply a conditional rule for certain segregated client-fund deposits held at banks by financial institutions, including e-money and payment institutions, where clients are eligible and identified or identifiable.

• FCA: Using payment service providers opens in a new tab

  Supports: In the UK, nonbank payment-provider funds are not protected by FSCS; EMIs and authorised payment institutions safeguard relevant funds, safeguarding can involve delays or shortfalls, and small payment institutions do not have to safeguard.

• European Supervisory Authorities: Crypto-asset risks and limited protection opens in a new tab

  Supports: Crypto-asset protections vary by asset and provider, may be limited, and consumers should check provider authorization and the protections that apply to the specific service.