Crypto Custody Firm Komainu Receives Regulatory Approval in the UK
The cryptocurrency custody firm, Komainu, which was co-created by CoinShares, has recently obtained regulatory approval in the United Kingdom. This approval allows Komainu to register as a custodian wallet provider under the Money Laundering, Terrorist Financing and Transfer of Funds regulations. As a result, Komainu can now offer its crypto custody services, including institutional staking and collateral management, through its Komainu Connect platform. The platform eliminates the need for storing collateral with trading partners by providing a secure custody solution that enhances asset safety and integrity.
In addition to the UK, Komainu has expanded its custody services to institutional clients in Italy and Singapore. Prior to this approval, Komainu operated under the regulatory oversight of the Jersey Financial Services Commission (JFSC) and obtained a license from the Dubai Virtual Asset Regulatory Authority (VARA).
Emphasizing Safe Practices
While regulatory uncertainty persists in the United States, the Financial Conduct Authority (FCA) in the UK is taking steps to define procedures for crypto entities. The FCA released guidelines on August 17 and issued a final warning regarding promotions on September 21. This commitment to regulation has attracted firms like Andreessen Horowitz to establish offices in London, indicating the city’s potential as a future crypto hub.
Hot Take: UK Regulatory Approval Boosts Confidence in Crypto Custody
Komainu’s regulatory approval in the UK is a significant milestone for the company and the crypto industry as a whole. With this approval, Komainu can expand its custody services and provide secure storage solutions for institutional clients. The move also highlights the UK’s commitment to regulating crypto entities and fostering innovation in the industry. As more firms seek regulatory approval and establish a presence in the UK, London has the potential to become a major hub for the crypto market. This development reinforces the importance of safe practices and secure custody solutions in the evolving world of cryptocurrencies.
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