# kaal:claim:3936876-038

**Claim.** Applying current legacy custody rules developed for traditional assets to digital assets is inconsistent with the foundations of decentralization, because the very nature of a decentralized system mandates the avoidance and eradication of intermediaries for business transactions.

**Type.** normative  **Support.** argued

**Holds when.**

- viewed from the perspective of decentralization

**Source quote.**

> From the perspective of decentralization, the application of current legacy rules around custody of traditional assets is inconsistent with decentralization foundations.

**From.** Wulf A. Kaal, Hayley Howe, *Custody of Digital Assets* (2021), IV. Conclusion, page 32

**Cite as.** Wulf A. Kaal, Hayley Howe, Custody of Digital Assets (2021). SSRN: https://ssrn.com/abstract=3936876

**Verify.** sha256 of source PDF `9bc0903d01910460298e754c451f027df4324367359800a98ee8e638d94aff55` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Howe%20-%202021%20-%20Custody%20of%20Digital%20Assets.pdf

**Failure mode.** legacy custody rules recentralize decentralized systems  (family: recentralization-drift)

**Topics.** decentralization, defi

**Keywords.** decentralization, legacy-regulation, intermediaries, custody-rules

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