Komainu Receives Regulatory Approval for Crypto Custody in the UK

Cryptocurrency custody firm Komainu, a joint venture involving CoinShares, Ledger, and Nomura, has achieved a significant milestone by securing approval from the UK Financial Conduct Authority (FCA) to register as a custodian wallet provider. This regulatory green light enables Komainu to offer crypto custody services within the UK, including collateral management services through its Komainu Connect platform.

The approval comes at a crucial time, as the FCA recently introduced new regulations regarding crypto promotions. These rules require firms to be registered in the UK to approve their own advertisements and provide appropriate risk warnings to users. Non-compliance could result in penalties of up to two years of imprisonment.

Komainu’s registration aligns with the Money Laundering, Terrorist Financing, and Transfer of Funds regulations from 2017. It marks a significant step forward for the company and the broader crypto industry as it continues to gain mainstream acceptance.

Nicolas Bertrand, CEO of Komainu, emphasized the importance of this regulatory milestone, stating, “This is a key regulatory milestone as the UK remains one of the most important hubs for financial technology and innovation that will spur the convergence of traditional and decentralized finance.”

Komainu has been proactive in ensuring regulatory compliance in various jurisdictions. The company has been regulated by the Jersey Financial Services Commission (JFSC) since November 2019. Additionally, it recently obtained a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA).

The firm’s European entity was added to the OAM registry in Italy, enabling it to extend digital asset custody services to Italian institutional clients. Komainu has also established its presence in Singapore since 2021, showcasing its commitment to complying with regulatory requirements across different regions.

Evelien van den Arend, Head of Legal, Compliance, and Regulation at Komainu, stressed the importance of a solid regulatory foundation for the company’s growth strategy, stating, “This UK MLR registration follows our recent registration with the relevant Italian authorities, as well as our establishment in Dubai. We are committed to supporting our growth strategy with a sound regulatory roadmap.”

Komainu, founded as a collaborative venture between Nomura Holdings, CoinShares, and Ledger, aims to provide institutions with secure and compliant custody services for digital asset investments. With the FCA’s approval, Komainu is well-positioned to participate in the evolving digital asset ecosystem in the UK and other significant jurisdictions.

Read more: Cointelegraph