Diginex Arm Becomes First Stand-Alone Crypto Custodian Approved by UK Financial Watchdog

Th firm hopes FCA approval will make it more attractive to institutional investors.

AccessTimeIconMay 14, 2021 at 12:12 p.m. UTC
Updated Sep 14, 2021 at 12:55 p.m. UTC

Diginex’s custodial arm, Digivault, has won regulatory approval from the U.K.’s Financial Conduct Authority (FCA) to register as a custodian wallet provider under anti-money laundering regulations.

  • The firm is the first stand-alone digital-asset custodian to receive approval from the FCA under 2017 regulations designed to combat money laundering and financing of terrorism, according to an emailed announcement Friday.
  • Digivault offers custody services for bitcoin, ethereum, USDC and other ERC-20 and ERC-1400 tokens.
  • It provides both cold and so-called warm storage, which incorporates hardware and software firewalls to protect assets while ensuring they remain readily available.
  • Digivault expects the FCA's approval will spur demand from institutional investors looking for the same level of regulatory oversight and protection received that other assets have.
  • In October, Diginex became the first crypto exchange operator to list on Nasdaq when it merged with special-purpose acquisition company 8i.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Three Arrows Capital Files for Bankruptcy in New York Tied to British Virgin Islands Proceeding

A British Virgin Islands court ordered Three Arrows' BVI branch into liquidation earlier this week.

CoinDesk - Unknown
2
CoinDesk - Unknown
Cosmos-Builder Ignite Cuts Headcount by More Than 50%, Ex-Employees Say

The reductions come amid a crypto market crash, and after the return of Ignite’s controversial ex-CEO.

CoinDesk - Unknown
3
CoinDesk - Unknown
India's Day Of Reckoning With ‘Most Controversial Crypto Tax’ Is Here

The country's 1% TDS is predicted to exacerbate negative market sentiment and add to the woes of the crypto community.

CoinDesk - Unknown