How to verify a crypto escrow service. The questions that separate regulated operators from unregulated ones.

Most crypto real estate buyers research the property thoroughly. They commission surveys, review title documents, and engage lawyers. The escrow provider — the entity that will hold their entire purchase price in digital assets for weeks — often receives a fraction of that scrutiny.

This is the wrong allocation of attention. If the property transaction fails and the escrow is structured correctly, you get your crypto back. If the escrow fails, you may have no recourse at all.

This article is a buyer's due diligence checklist. The questions here are what every buyer should ask before transferring cryptocurrency to any escrow service. Where relevant, we use Brik as an example of what a compliant operator's answers look like — not to close a sale, but to give you a reference point for what adequate answers sound like.

Question 1: What Licence Does This Operator Hold, and From Whom?

This is the first question and the one most buyers skip. Licensing is not a formality. It is the mechanism through which a regulator has verified that an entity meets minimum capital, governance, and compliance standards before being permitted to hold client assets.

A legitimate crypto escrow provider operating in a regulated jurisdiction should be able to tell you:

• The exact name of the licence they hold (e.g., Major Payment Institution licence, CASP authorisation, Digital Asset Custodian licence)
• The name and jurisdiction of the issuing regulatory authority
• The licence number or registration number
• How to verify that licence status on the regulator's public register

After receiving this information, verify it yourself. MAS in Singapore publishes a public list of licensed Digital Payment Token service providers. The European Securities and Markets Authority (ESMA) maintains a register of MiCA-authorised CASPs. These registers are free and publicly accessible.

Brik operates within the regulatory framework of each market it serves. In EU markets, this means alignment with MiCA's CASP requirements. In Singapore, within the MAS Payment Services Act perimeter. Buyers can and should ask for the current licence details before any agreement is signed.

Question 2: How Are Client Assets Held?

The mechanics of custody determine what protections you have if the escrow provider encounters financial difficulty, is hacked, or becomes insolvent before your deal completes.

Ask the provider to explain in writing:

• Whether client assets are held in accounts segregated from the provider's own funds
• Whether the provider uses cold storage, hot wallets, or a combination, and what percentage of assets are held in cold storage
• Whether any sub-custodians are used, and if so, who they are and what their regulatory status is
• Whether client assets are insured, and if so, against what risks and up to what value
• What technical controls prevent unauthorised access to the escrow wallet

Under MiCA in the EU, authorised CASPs are required to segregate client assets, maintain a written custody policy, and cannot use client assets for the firm's own purposes. Under the MAS Payment Services Act in Singapore, equivalent requirements apply. An escrow provider that cannot describe its custody structure clearly should not be trusted with a high-value deposit.

The relevant comparison is not to a crypto exchange or a personal wallet. It is to a regulated custodian — the same standard applied to a bank holding client funds in a conveyancing transaction. The question is: if this entity fails tomorrow, is my crypto ring-fenced?

Question 3: What Compliance Framework Does the Deal Run Through?

A crypto real estate transaction involves at least two parties, multiple wallet addresses, and a substantial fund transfer. Each of these creates legal exposure that compliance procedures are designed to mitigate — for the buyer, the seller, and the escrow provider.

The three compliance requirements that every regulated escrow provider should apply are:

KYC (Know Your Customer). Identity verification on both the buyer and the seller before any funds are accepted. Government-issued identification, proof of address, and — for HNW transactions — source of wealth documentation. Ask the provider: is KYC required from both parties, or only the buyer? What happens if the seller declines to complete KYC? The correct answer is that the deal does not proceed. An escrow provider that accepts funds without full KYC on both parties is operating outside AML requirements in most regulated jurisdictions.

KYT (Know Your Transaction). Blockchain analytics screening of every wallet involved in the transfer. This process checks wallet addresses against OFAC, UN, and jurisdiction-specific sanctions lists, as well as commercial risk databases. It identifies funds that have transited through mixers, darknet markets, or flagged addresses. Ask the provider: what analytics vendor do you use for KYT? What happens if a wallet screens as high risk? If the provider cannot answer these questions specifically, KYT is likely not being performed at all.

FATF Travel Rule compliance. On qualifying transfers, the originating institution must send identifying information about the sender along with the transaction. If the buyer's originating exchange cannot comply with Travel Rule obligations, the receiving custodian — if regulated — cannot accept the transfer. This is a technical requirement with real operational implications. Ask the provider: does your platform receive and process Travel Rule information? If so, from which counterparties?

Question 4: What Are the Exact Terms of the Escrow Agreement?

An escrow agreement is the legal document that defines when funds are released, who can instruct release, and what happens if conditions are not met. Before transferring any funds, you should have read the escrow agreement in full and had it reviewed by your legal counsel.

Key provisions to examine:

• Release conditions: What event triggers release — deed transfer, land registry confirmation, or a signed instruction from both parties? "Both parties sign off" leaves room for dispute. "Land registry confirms transfer" does not.
• Return conditions: Under what circumstances are funds returned to the buyer? How long does this take? What documentation is required?
• Default: What happens if either party defaults? Who bears the cost of the escrow period if the deal collapses?
• Governing law and jurisdiction: Which country's law governs the agreement? In which court are disputes resolved? This matters significantly if the buyer, seller, and escrow provider are in different jurisdictions.
• Force majeure and insolvency: What happens to client funds if the escrow provider becomes insolvent mid-transaction?

A reputable provider will send you the escrow agreement before you sign an engagement, not after. The buyers guide covers how Brik's escrow documentation is structured and what the release conditions look like in practice.

Question 5: What Happens if the Deal Fails?

This question is worth asking explicitly, because the answer reveals a great deal about how the provider operates.

A regulated escrow provider should be able to tell you, without hesitation:

• The exact conditions under which your crypto is returned
• How long the return process takes
• Whether any fees are deducted on return, and under what circumstances
• The dispute resolution process if the buyer and seller disagree on whether release conditions were met
• Whether there is an independent third-party adjudication mechanism or whether the escrow provider itself makes the determination

The answer "we return your funds immediately" is not sufficient. Immediately relative to what? Upon whose instruction? After what verification? The mechanics matter because crypto transactions are irreversible once executed. There is no recall once the escrow releases, regardless of whether the underlying deal turns out to be disputed.

Question 6: What Is the Track Record?

Regulatory compliance is necessary but not sufficient. A licenced entity that has just entered the market has capital and governance in place. It does not have a track record of completing complex multi-jurisdictional crypto real estate transactions.

Ask the provider for evidence of completed transactions. Not testimonials. Not anonymised case studies. Confirmation that transactions have closed in the specific jurisdiction you are targeting — that deals have reached deed transfer, funds have been released, and the mechanics worked as described.

You should also check whether the provider has been the subject of regulatory action. In the EU, competent authorities publish enforcement decisions. In Singapore, MAS publishes regulatory actions against licensed entities. These are public records.

The Due Diligence Checklist

Before transferring funds to any crypto escrow service, confirm the following:

• Licence type, number, and issuing authority confirmed and independently verified on the regulator's public register
• Client asset segregation confirmed in writing, including confirmation that client crypto cannot be used for the provider's own purposes
• KYC required from both buyer and seller — not optional, not waivable
• KYT performed on all depositing wallets using a named analytics provider
• FATF Travel Rule compliance in place for qualifying transfers
• Escrow agreement reviewed by your legal counsel before signing
• Release conditions tied to a verifiable external event (deed transfer, land registry confirmation) rather than party instructions alone
• Return and default procedures clearly defined in the escrow agreement
• Evidence of completed transactions in your target jurisdiction
• No active regulatory enforcement actions against the provider

If you are evaluating escrow providers for a transaction in Portugal, Cyprus, or Singapore and want to understand how Brik structures its operations in each market, contact us directly. We are prepared to answer all of the questions above.

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