Protection customers can count on

The Union licenses Digital Companies and protects their customers with what matters most: published licence conditions, money set aside in advance, and a court that decides claims. Companies that meet the standard can show it, and anyone can check it in seconds.

Standard Digital Company

Any lawful activity, with no licence and no deposit. Formed online and registered for 1 to 10 years.

Form a company

Licensed Digital Company

Holds Union Licences for the activities it carries on, on published conditions, shown in the register.

Licensed Activities Act

Protected Digital Company

Backs its business with a Protection Deposit held by the Union Treasury, which its customers can claim from.

Protection Deposit Act

How it works

Money set aside before anything goes wrong

A Protection Deposit turns a company's promises into money its customers can recover.

1
Licence
The company chooses the Union Licences for what it does. It can combine as many classes as it needs.
2
Deposit
For activities that hold customers' money or assets, it places a Protection Deposit in Bitcoin with the Union Treasury.
3
Claim
A passport holder the company has wronged brings a claim in the Union Court. Both sides are heard.
4
Payment
If the claim succeeds, the Treasury pays the award from the deposit, and the company must top it up to stay protected.

Held, not used

The Treasury keeps deposits in Bitcoin, separate from the Union's own funds. It never lends, invests or spends them, and publishes the total it holds.

Decided by a court

Claims are heard by the Union Court under published procedure, with both sides heard and written reasons.

The Union Court

Returned, less any awards

When a company closes or gives up its protection, its deposit is returned after a 180-day claims period, less any awards.

Protection Deposits held by the Union Treasury

0 BTCfor 0 companies

The protection mark

A mark worth showing

Protected companies may display the Union's protection mark on their websites, apps and materials. Licensed companies without a deposit may show the licence mark, “Licensed by UHDU · Union Licence holder”.

Every mark carries the company's Company ID, so customers can check it in the register, with its licences and the deposit it holds.
The mark may be shown only while the deposit is in good standing. If a payment takes it below the minimum, the right to show the mark is suspended until it is restored.
It is a protected symbol of the Union. Misuse leads to licences being revoked and the company being struck off.
Companies embed a live badge, drawn from the register every time it is shown. If a licence or deposit lapses, the badge changes at once, so a mark can never outlive the protection behind it.

Licensed by UHDU

Protected by the Union Treasury

Deposit held 1.25 BTC

UDC-XXXX-XXXX · uhdu.org/registry

Why deposits

Protection that pays, without collecting more data

Identity checks serve real purposes, and many countries require them; companies remain responsible for any that apply to them. But a check repays no one, and every stored copy of a customer's identity is something that can be lost.

Insiders can be paid to take records

In May 2025 Coinbase told the US Securities and Exchange Commission that criminals had paid support contractors to take customer data, including images of government ID, and then demanded money. It estimated the cost at $180–400 million.

Coinbase Form 8-K

Addresses outlive the purchase

In 2020 the hardware-wallet maker Ledger disclosed that the names, postal addresses and phone numbers of customers had been taken from its e-commerce database.

Ledger breach notice

Knowing who holds assets has a price

A public record kept by Jameson Lopp lists about 800 known physical attacks on holders of crypto-assets, including the kidnapping of a Ledger co-founder in France in January 2025.

Known physical attacks

The Union's approach adds a different kind of protection. A customer who is wronged by a protected company can recover money that is already set aside, through a court, without the Union asking the company for its customers' personal data. The company shows its commitment with its own capital, and its customers can see exactly how much stands behind it.

Deposits and bonds are a proven way to protect customers. The Union applies the same idea to digital companies:

Player funds in gaming

The Malta Gaming Authority requires licensees to protect players' money (Player Protection Directive, Part IX).

MGA Directive 2 of 2018

Travel bonds

In the UK, ATOL-licensed travel firms are backed by bonds, so customers are refunded or brought home if the firm fails.

UK CAA: ATOL

Capital for virtual-asset firms

Dubai's virtual-asset regulator licenses eight activity classes and requires firms to hold paid-up capital and liquid assets.

VARA activities

By industry

Licensing for your industry

The classes, deposits and customer protection that fit your business, in one place.

Gaming and gambling

8 licence classes: Casino and games of chance, Sports and event betting, Poker and peer-to-peer games, Virtual-item and skin marketplaces, Skill competitions, Gaming platforms for operators, Gaming affiliates, Games without stakes.

Virtual assets

10 licence classes: Custody, Exchange, Broker-dealer, Virtual-asset management, Lending and staking, Transfer and payments, Token issuance, Derivatives and leveraged trading, Investment funds, Virtual-asset advisory.

Digital trade and marketplaces

3 licence classes: Marketplace with escrow, Digital trade, Software and SaaS.

AI services

3 licence classes: AI services, Software and SaaS, Data and analytics.

Union Licences

Licence classes

A company may hold any number of classes. Where it holds several protected classes, it keeps the highest of their minimum deposits. A company may always deposit more, and the amount it holds is shown on its mark.

Virtual assets

Advisers, brokers, exchanges, custodians, lenders and token issuers.

V1
Virtual-asset advisory
Advice on acquiring, holding or disposing of virtual assets.
Licence fee
0.005 BTC / year
Protection Deposit
Not required
V2Protected
Virtual-asset management
Managing virtual assets or portfolios on behalf of customers.
Licence fee
0.02 BTC / year
Protection Deposit
2.5 BTC, returnable
V3Protected
Broker-dealer
Arranging, executing or dealing in virtual-asset orders for customers.
Licence fee
0.02 BTC / year
Protection Deposit
2.5 BTC, returnable
V4Protected
Exchange
Operating a platform that matches orders and holds customers' assets.
Licence fee
0.02 BTC / year
Protection Deposit
5 BTC, returnable
V5Protected
Custody
Holding virtual assets or their keys on behalf of customers.
Licence fee
0.02 BTC / year
Protection Deposit
5 BTC, returnable
V6Protected
Lending and staking
Lending, borrowing or staking customers' virtual assets.
Licence fee
0.02 BTC / year
Protection Deposit
2.5 BTC, returnable
V8Protected
Token issuance
Issuing tokens to the public, including stable-value tokens and tokens backed by gold or other assets.
Licence fee
0.02 BTC / year
Protection Deposit
1 BTC, returnable

Compare with offshore licensing for virtual assets

Games and gambling

Casinos, sportsbooks, poker rooms, skill games, item marketplaces, suppliers and affiliates.

G1
Games without stakes
Games in which players cannot win money or assets.
Licence fee
0.005 BTC / year
Protection Deposit
Not required
G2Protected
Skill competitions
Competitions decided by skill, with entry fees and prizes held by the company.
Licence fee
0.02 BTC / year
Protection Deposit
0.25 BTC, returnable
G3Protected
Casino and games of chance
Casino games, slots, lotteries and other games of chance in which players stake money or assets.
Licence fee
0.02 BTC / year
Protection Deposit
1 BTC, returnable
G4Protected
Sports and event betting
Bets on sports, e-sports and other events, including exchanges and prediction markets.
Licence fee
0.02 BTC / year
Protection Deposit
1 BTC, returnable
G5Protected
Poker and peer-to-peer games
Games in which players play against each other for stakes, with the company holding the pot.
Licence fee
0.02 BTC / year
Protection Deposit
0.5 BTC, returnable
G6Protected
Virtual-item and skin marketplaces
Trading, cases and draws of in-game items and skins that have a value in money or assets.
Licence fee
0.02 BTC / year
Protection Deposit
0.5 BTC, returnable
G7
Gaming platforms for operators
Supplying games, platforms and services to other gaming companies, without taking players' stakes.
Licence fee
0.005 BTC / year
Protection Deposit
Not required
G8
Gaming affiliates
Referring players to gaming companies for a commission.
Licence fee
0.005 BTC / year
Protection Deposit
Not required

Compare with offshore licensing for games and gambling

Adult and dating

Adult content platforms, creators' subscriptions and dating services.

A1
Adult content and subscriptions
Adult content and creators' subscriptions, for adults only, under the conditions in Article 4.
Licence fee
0.005 BTC / year
Protection Deposit
Not required
A2
Dating platforms
Online dating and social discovery services for adults.
Licence fee
0.005 BTC / year
Protection Deposit
Not required

Trading and investment

Derivatives, leveraged trading and investment funds settled in digital currency.

V9Protected
Derivatives and leveraged trading
Futures, options, contracts for difference and other leveraged products, including on currencies, settled in digital currency.
Licence fee
0.02 BTC / year
Protection Deposit
5 BTC, returnable
V10Protected
Investment funds
Pooling investors' money or assets in a fund managed by the company.
Licence fee
0.02 BTC / year
Protection Deposit
2.5 BTC, returnable

Compare with offshore licensing for trading and investment

Payments

Payment processors, gateways and money transfer in digital currency.

V7Protected
Transfer and payments
Transferring virtual assets and processing payments for customers, including remittances.
Licence fee
0.02 BTC / year
Protection Deposit
1 BTC, returnable
F1Protected
Merchant payment processing
Accepting digital-currency payments on behalf of merchants, including high-risk merchants, and settling to them.
Licence fee
0.02 BTC / year
Protection Deposit
1 BTC, returnable

Insurance

Cover for digital assets and captive insurance for your own group.

I1Protected
Digital-asset cover and mutual protection
Covering customers against losses of digital assets, alone or as a mutual pool.
Licence fee
0.02 BTC / year
Protection Deposit
5 BTC, returnable
I2Protected
Captive insurance
Insuring the risks of the company's own group only.
Licence fee
0.02 BTC / year
Protection Deposit
2.5 BTC, returnable

Compare with offshore licensing for insurance

Digital trade and e-commerce

Online shops, marketplaces and subscription businesses.

T1
Digital trade
Selling digital goods, licences and subscriptions to customers.
Licence fee
0.005 BTC / year
Protection Deposit
Not required
T2Protected
Marketplace with escrow
Operating a marketplace that holds buyers' payments until delivery.
Licence fee
0.02 BTC / year
Protection Deposit
0.5 BTC, returnable
T3Protected
Subscriptions and recurring billing
Charging customers again and again for a service, with cancellation at any time.
Licence fee
0.02 BTC / year
Protection Deposit
0.25 BTC, returnable

Technology

Software, AI and data businesses.

S1
Software and SaaS
Developing, hosting and licensing software and online services.
Licence fee
0.005 BTC / year
Protection Deposit
Not required
S2
AI services
Providing AI models, agents and AI-based services.
Licence fee
0.005 BTC / year
Protection Deposit
Not required
S3
Data and analytics
Collecting, processing and analysing data for customers.
Licence fee
0.005 BTC / year
Protection Deposit
Not required

Professional and creative services

Advisers, agencies, educators and publishers.

P1
Consultancy
Advisory and professional services, other than virtual-asset advice.
Licence fee
0.005 BTC / year
Protection Deposit
Not required
P2
Creative and marketing
Design, content, advertising and marketing services.
Licence fee
0.005 BTC / year
Protection Deposit
Not required
P3
Education and training
Courses, tutoring and training delivered online.
Licence fee
0.005 BTC / year
Protection Deposit
Not required
P4
Media and publishing
Publishing news, writing, audio and video.
Licence fee
0.005 BTC / year
Protection Deposit
Not required

The Union does not license payday lending, binary options, medicines or controlled substances, debt collection or dealing in physical precious metals (Licensed Activities Act, Article 2).

Any Digital Company may also place a voluntary deposit of at least 0.05 BTC to become protected without a protected licence. A deposit is not a fee: it remains the company's and is returned under the Protection Deposit Act.

A Union Licence is valid within the Union and its Digital Realm. It is not a licence of any state, and the protection mark does not mean that a company is authorised or supervised by any state regulator. Companies remain responsible for any licence, registration or approval required where they operate or offer their services.

Protection is limited to the amount of a company's deposit; the Union does not guarantee any company's conduct. The Founding Council sits as the Union Court and oversees the Treasury, deciding under published rules and giving written reasons.

Owners add licences, place deposits, set the return address and get their mark from Licences and protection on each company in their account. The rules are set out in the Licensed Activities Act and the Protection Deposit Act.

Form a Digital Company Statute book