UK-based financial regulators have reportedly granted their go-ahead to Digivault – the security token custody division of crypto assets group Diginex, to finalize its registration for operating as a custodian wallet provider.

Specifically, as revealed by Diginex on May 14th, the Financial Conduct Authority (FCA) has reportedly offered regulatory approval for its registration, to function as a stand-alone virtual asset custodian across the UK. 

The development reportedly indicates that Digivault complies with the financial watchdog’s regulations on Anti-Money Laundering and Combating the Financing of Terrorism.

Per the custodian, Digivault reportedly has a goal to “provide compliant and secure custody services to corporate and institutional investors in crypto-assets”. The entity shared that its custody service comes with storing crypto assets in cold storage in physical vaults, in the possession of the Hong Kong-headquartered security entity Malca-Amit.

Rob Cooper – Head of Digivault – reportedly disclosed that the increasingly popular stance that Bitcoin (BTC) “is a true store of value for the future” has resulted in a surging demand for secure crypto storage selections. 

Numerous institutional investors including Tesla and MicroStrategy have reportedly established their presence across the crypto sphere in 2020, via buying BTC as a reserve asset.

“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 regulator’s support for this new asset class is indeed there, and is an enabler to drive more institutional flow.” Cooper further stated.