Digital asset custody service provider Komainu secured approval on Friday from the U.K. Financial Conduct Authority (FCA) to register as a custodian wallet provider.

The FCA's new promotions rules came into effect over the weekend, reported CoinDesk. The rules require firms to be registered in the U.K. to be able to approve their ads and convey appropriate risk warnings to users, it was further reported. Non-compliance could mean up to two years of imprisonment.

This authorization aligns with the Money Laundering, Terrorist Financing and Transfer of Funds (Information of the Payer) regulations from 2017.

As the crypto industry continues to evolve, events such as Benzinga's Future of Digital Assets conference on Nov. 14 are pivotal in highlighting such advancements.

Speaking about the registration, Komainu CEO Nicolas Bertrand, said, “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.”

He further emphasized Komainu's strategic positioning to leverage the burgeoning digital asset ecosystem in the UK and other significant jurisdictions.

Komainu, which has been regulated by the Jersey Financial Services Commission (JFSC) since November 2019, recently acquired a VASP license from the Dubai Virtual Assets Regulatory Authority (VARA).

Additionally, its European entity was added to the OAM registry in Italy, enabling it to extend digital asset custody services to Italian institutional clientele. Komainu has also marked its presence in Singapore since 2021.

Evelien van den Arend, head of Legal, Compliance and Regulation at Komainu, commented on the company's growth trajectory: “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.”

Founded as a collaborative venture between Nomura Holdings Inc (NYSE:NMR), digital asset manager CoinShares and digital asset security firm Ledger, Komainu aims to offer institutions a secure and compliant custody service for digital asset investments.

Photo: Shutterstock