FCA grants Digivault, the Diginex custodian, permission to operate in the UK

Digivault, the digital-asset custodian within the Diginex group, has received the relevant licence from the UK Financial Conduct Authority (FCA).

Today we are proud to announce our #DigitalAsset custody branch @DigivaultGlobal became the first standalone custodian to receive FCA approval to custody #crypto, furthering our mission to bring digital assets to the world. $EQOS https://t.co/NmFwT2eSI2

— Diginex (@DiginexGlobal) May 14, 2021

The company said it anticipated an influx of institutional clients once regulatory uncertainty abated. The FCA’s decision signals Digivault’s compliance with AML/CFT requirements.

Chief executive Rob Cooper told Cointelegraph that the regulator has effectively recognised a new asset class.

Digivault offers cold wallets kept in the physical vaults of Hong Kong-based Malca-Amit, a specialist in security matters. The firm has also developed a solution that employs hardware- and software-firewalls.

The custodian provides storage for Bitcoin, Ethereum, and tokens conforming to the ERC-20 and ERC-1400 standards.

banned the sale of derivatives based on digital assets to retail investors.

In December 2020 the regulator introduced a temporary-registration regime for cryptocurrency firms.

In early 2021 the FCA warned that investing in cryptoassets carries high risks.