UK Financial Watchdog gives approval to Diginex’s crypto custody arm

UK Financial Watchdog gives approval to Diginex's crypto custody arm

Digivault, the security token custody arm of digital assets group Diginex, to register as a custodian wallet provider, has been approved by financial regulators in the U.K

Digivault was given the approval by the Financial Conduct Authority, to register as a stand-alone digital asset custodian in the United Kingdom according to announcement from Diginex today.

Financial watchdog’s rules on Anti-Money Laundering and Combating the Financing of Terrorism in the United Kingdom,  requires that Digivault should comply with their  rules before approval and with the approval shows that it complied accordingly.

The firm said its custody solutions include having digital assets in cold storage in physical vaults owned by Hong Kong-based security firm Malca-Amit and according to the custodian, Digivault aims to “provide compliant and secure custody services to corporate and institutional investors in crypto assets.”

Digivault CEO Rob Cooper told Cointelegraph that the growing view that Bitcoin (BTC) “is a true store of value for the future” has led to a greater demand for secure crypto storage solutions. A large number of institutional investors including Tesla and MicroStrategy have entered the crypto space in the last year by purchasing BTC as a reserve asset.

Cooper added:

“The FCA AML approval is huge news not only for Digivault but also the sector as a whole because it means businesses are now moving from the temporary register to the full approval. This sets a precedent that the regulators support for this new asset class is indeed there, and is an enabler to drive more institutional flow.”

 

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