UK financial regulators have approved the registration of Digivault, The security token custody arm of Diginex Digital Asset Group as a custodian wallet provider.
In a statement from Diginex today, the company said so The Financial Conduct Authority (FCA) gave Digivault the green light to register as an independent digital asset custodian in the UK. The measure implies that Digivault will adhere to the financial watchman’s rules for combating money laundering and terrorist financing.
According to the custodian, Digivault aims to do this “Providing compliant and secure custody services for corporate and institutional investors in crypto assets.” The company said its escrow solutions include storing digital assets in cold rooms in physical vaults owned by the Hong Kong-based security company. Malca-Amit.
Digivault CEO, Rob Cooper, youTO said that to Cointelegraph The growing belief that Bitcoin (BTC) is “a true store of value for the future” has led to increased demand for secure cryptocurrency storage solutions. A large number of institutional investors, including Tesla and MicroStrategy, entered the cryptocurrency space last year by buying BTC as reserve assets.
“The FCA AML approval is good news not just for Digivault but for the industry as a whole as companies move from temporary registration to full approval. This sets a precedent for regulators for this new class of supporting assets to be in place and it is a factor that enables greater institutional flow to be fostered. “
The FCA has expanded its scope in the past few months as the cryptocurrency space has evolved. In October, The Financial Watchdog announced that British companies would no longer be able to offer crypto derivatives. including futures and negotiable bonds. That year the FCA said it did too would require cryptocurrency companies Submit annual reports on financial crimes.