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I mean if a bank institution closes down there is an amount of money insured. What happens if Coinbase or Crypto.com which is actually just a web site goes off?

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There is a saying: "Not your keys, not your bitcoin".

If you don't put your own money in your own personal non-custodial wallet and look after it yourself then you are relying on the honesty and competence of a large number of other people.

You can hope that the closed business didn't close because it lacked solvency to pay its creditors (including you) or that it had some kind of insurance that will cover your loss.

Many businesses claim to be regulated but those claims are mainly to reassure customers. The truth is that in most jurisdictions, this kind of business is far less regulated than retail banks are and they are typically not required to contribute to industry compensation schemes for customers of failed businesses.

Personally I think customers of these businesses take an overly optimistic view based on almost no supporting evidence. Many such businesses have closed and their customers have often lost all or most of their money. That's just my opinion though. Consider the fate of customers of businesses that were industry-leading and highly regarded, such as MtGox, Quadriga-Cx and many others.

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