The UK Financial Conduct Authority (FCA) has licensed Digivault to provide custody services for digital assets in the country.
Digivault is the blockchain and cryptocurrency division of Diginex. The service provides cold storage of digital assets in physical vaults owned by Hong Kong-based security firm Malca-Amit.
Digivault CEO Rob Cooper said that being licensed by the FCA to provide custodian services means that the service is operating in accordance with the financial supervision rules for combating the financing of terrorism and money laundering (AML).
According to Cooper, the widespread belief that bitcoin is a reliable store of value has led to an increase in demand for secure solutions for storing digital assets. Last year, a large number of institutional investors entered the cryptocurrency market, including Tesla and MicroStrategy, who acquired Bitcoin as a reserve asset.
“Obtaining an FCA license is good news not only for Digivault, but for the entire cryptocurrency industry as a whole. Our case has become a precedent. Regulators have begun to support the new asset class, and this will facilitate the flow of funds from large companies into the cryptocurrency market, ”Cooper said.
In recent months, the FCA has tightened its requirements for cryptocurrency firms. In March, the department obliged them to submit annual reports on the possible risks associated with financial crimes. In addition, the regulator has banned the sale of cryptocurrency derivatives to retail investors. The ban went into effect at the beginning of the year.
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