Digivault, the secure digital asset custody company of Nasdaq listed Diginex Limited, has become the first stand-alone digital asset custodian that has been approved by the Financial Conduct Authority (FCA) in the UK.
With the FCA being known to be a very tough regulator, especially with respect to crypto firms, it indeed is a big achievement for the company to have received this approval to perform compliant digital asset custody services for its clients.
The company has both a cold wallet as well as hot wallet solutions for its clients. The cold wallet solution has been implemented with the help of the vault services provider, Malca-Amit. In this solution, the crypto and digital assets are stored in a totally offline solution in a place that also houses traditional valuable instruments like gold and silver as well.
The hot wallet solution is actually a combination of cold and hot wallet with a physical break between them that ensures that the digital assets are secure but at the same time they are available immediately when needed.
Rob Cooper, CEO of Digivault, said: “We have been delighted to work so closely with the FCA on obtaining this registration. Operating within the FCA’s MLR framework provides our clients the assurance that their assets are being custodied within the highest possible standard of governance, control and oversight.”
The custody solution that Digivault offers is for bitcoin, ethereum and USDC as well as for other tokens in the ERC-20 and ERC-1400 protocols. With more and more large investors and companies looking to acquire digital assets and use them as store of value and a hedge against inflation, just like how gold and silver were viewed many years ago, it is important for such users to be able to have a custodian solution to ensure safety of their digital assets.
Richard Byworth, CEO of Diginex Limited, said: “The FCA approval is continued validation of our strategy to deliver fair, transparent and compliant crypto products for institutions. Digivault’s market leading custody solution is a foundational pillar of the Diginex ecosystem and acts a key enabler to the EQUOS Exchange, OTC and Lending business lines.”
Despite many regulatory authorities continuing to view digital assets with suspicion and many of them continuing to advise that the volatility of the market makes it a very bad candidate for anything other than speculation, the market and the volume in the crypto circles continues to grow in recent months, which has been very handsomely helped by the recent spurt in the prices of bitcoin and other digital assets.