The Financial Conduct Authority has authorized Digivault to offer custody services for virtual assets in the UK.
Digivault is the blockchain and crypto division of Diginex. The company provides cold storage of digital assets in physical cellars owned by Hong Kong-based security company Malca-Amit.
Digivault CEO Rob Cooper stated that being licensed by the FCA to deliver custodian services implies that the service is working in accordance with the financial regulation rules for preventing the funding of terrorism and laundering of money.
In the words of Cooper, the widespread confidence that Bitcoin is a trustworthy store of value has led to a rise in demand for safety solutions for the storage of digital assets. In the past year, numerous institutional investors joined the cryptocurrency market, in that count Tesla and MicroStrategy, who obtained Bitcoin as a form of a reserve asset.
“Getting an FCA license is excellent news not only for Digivault but also for the whole cryptocurrency industry. Our success has turned into a precedent. Regulators are now beginning to accept the new asset class, and this development will facilitate the flow of funding from major companies into the crypto market,” Cooper noted.
In the past few months, the FCA has stiffened its requirements for crypto firms. In March, the department required them to present annual reports on potential risks associated with financial crimes. Furthermore, the regulator has prohibited the sale of crypto derivatives to retail investors.
