Financial Conduct Authority (FCA) has awarded and Electronic Money Institution (EMI) certificate to crypto assets custodian, Koine, Financial Magnates reports.
Koine announced on Thursday that it has secured a licence to issue electronic money from FCA. The licence means that Koine can now offer real time e-money payment services to their increasing institutional clientele. Koine also revealed that plans are underway to seek licensure in various financial services locations.
Koine’s chairman Hugh L. Hugh praised the authorization stating that the EMI license will help the firm to move with speed and invest in the necessary infrastructure that will enhance institutional participation within the digital assets market.
Commenting on the development, Hugh L. Hughes, chairman and CEO of Koine, said,
“Market reaction to Koine’s ultra-secure scalable institutional class solution for custody and settlement, has been immensely favorable, and with our EMI authorization now issued by the FCA, we are rapidly moving to implement the market infrastructure necessary to support institutional participation in the digital assets marketplace.”
Currently, Koine enjoys a wide clientele of more than 40 ranging from families to institutions as well as funds. The firm offers custodial as well as real time settlement services in fiat as well as digital assets.
The company has its headquarters in London but its crypto assets custody services are not covered by the UK regulation framework. In this regard, the new license is not authorization of the firm’s digital asset custody business.
“e-Money authorization should not be read as authorization of Koine’s transformative custody and settlement model for digital assets.”
Hughes explained that the recognition by the FCA of the control procedures that the firm has enacted, irrespective of their views regarding the crypto space, is a testament that London is still an attractive base for crypto-based firms alongside the conventional financial companies. He explained that all that is needed for the crypto-based firms is to explain the controls put in place to satisfy the regulator’s standards and guidelines.
Hughes commented further,
“The FCA’s recognition of the controls and processes that we have put in place for our EMI authorization, notwithstanding their concerns regarding the digital markets, shows that London can continue to attract financial institutions in the digital markets, alongside traditional capital markets, as long as those institutions can show that they have appropriate governance to address the regulator’s requirements.”
Started in 2017, Koine has continued to come up with unique solutions which makes it stand out among its rivals who offer hot wallet and cold storage services. The firm offers manual transfers, offering advanced security for clients’ assets and immediate settlement as well as withdrawals.
The company has been monitoring the best practices exercised by the conventional custodians and has been able to withstand the test of time and is now among one of the largest digital assets custodians.