Fractal, the Berlin-based authentication provider working to transform financial identification, has notified the German Federal Financial Supervisory Authority (BaFin) that its subsidiary Fractal Vault GmbH has qualified as a custodian of crypto assets in 2019.
Besides, the company has also announced its intention to apply for a crypto-vault license. In doing so, it is currently benefiting from the transition period which favors established crypto-vaulters.
Founded in 2017, Fractal Vault initially provided an infrastructure for the delivery of digital assets. In late 2019, it expanded its services to include full crypto-asset custody for institutional crypto owners and consumers.
“By establishing a licensed financial institution, we are making progress towards our vision of creating an open, secure and inclusive financial ecosystem. We want to see an open financial ecosystem thrive and we want to protect the pioneers in this ecosystem,” comments Julian Leitloff, CEO of Fractal.
Fractal also offers cryptographic preservation services to its blockchain customers.
Advantages of BaFin supervision
“We have been given the opportunity to have our customer identification procedures reviewed by the German Financial Supervisory Authority, which is considered one of the toughest in the world. For us, this is not only an incentive to continuously improve the trustworthiness and security elements of our systems and processes, but also an opportunity to prove that the verification and AML screening we offer our customers are of the highest standard.”
Fractal will now be able to transfer this knowledge to its product offering. This includes its customer identification platform — as a service called Fractal ID. By working with regulatory authorities such as BaFin, Fractal ensures to meet the highest regulatory standards in each market. It also ensures that the company offers fully compliant processes and acts as an equal and trusted partner for its clients.
Source: Fractal press release on BTC-Echo
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