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Komainu Secures FCA Approval: Paving the Way for Secure Crypto Custody Services

Jack Evans
Oct 9, 2023 at 11:53 am

In a significant development for the cryptocurrency industry, Komainu, the crypto custody firm born from the collaboration with CoinShares, has officially received regulatory approval in the United Kingdom. The announcement, made on October 6, marks a pivotal moment for Komainu, as it can now register as a custodian wallet provider under the Money Laundering, Terrorist Financing, and Transfer of Funds regulations, strengthening its position as a trusted and compliant player in the crypto sphere.

With this regulatory green light, Komainu is set to offer its comprehensive crypto custody services to a broader audience, particularly institutional clients. This includes features such as institutional staking and collateral management, all accessible through its innovative Komainu Connect platform. Originally unveiled in April 2023, this platform revolutionizes the way institutions manage their crypto assets. It eliminates the need to store collateral with trading partners, replacing it with a secure custody solution that not only simplifies processes but also enhances the overall safety and integrity of assets.

Expanding its reach beyond the UK, Komainu has also extended its custody services to institutional clients in Italy, thanks to its European entity's inclusion in the relevant registry. Furthermore, Komainu has ventured into the competitive crypto landscape of Singapore, solidifying its presence as a global leader in crypto custody solutions.

Before securing FCA approval, Komainu had been operating under the regulatory oversight of the Jersey Financial Services Commission (JFSC) since November 2019. This year, in a significant move, the Dubai Virtual Asset Regulatory Authority (VARA) granted the company a license in February, demonstrating Komainu's commitment to adhering to stringent regulatory standards and ensuring safe practices across various jurisdictions.

While regulatory uncertainty looms in the United States, the FCA's proactive approach in defining procedures for crypto entities stands as a beacon of hope for the industry. The agency's recent guidelines unveiled on August 17, coupled with the issuance of a final warning for crypto promotions on September 21, reflect the UK's commitment to fostering a conducive environment for crypto businesses to thrive.

With firms like Andreessen Horowitz establishing offices in the UK, there is a growing belief that London could soon emerge as a major crypto hub. Komainu's journey, from its inception to securing FCA approval, exemplifies the industry's potential and resilience in the face of evolving regulations and growing global interest in cryptocurrencies.

Komainu's success story serves as a testament to the cryptocurrency industry's ongoing evolution. With regulatory approvals in hand and a commitment to secure practices, Komainu is well-positioned to continue providing top-notch crypto custody services, paving the way for a safer and more accessible crypto landscape for institutional clients worldwide. As the crypto world continues to mature, it's clear that innovation, compliance, and dedication to security will remain key drivers of success in this dynamic industry.

Read more: Unlocking a New Era in Finance: Coinbase's Base Protocol Launches its First Tokenized Security

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