Tungsten Custody Solutions Ltd, known as “Tungsten”, has officially launched the first regulated custodian of virtual assets, tailored to safeguard virtual assets exclusively for institutional investors within the ADGM.

Headquartered in Al Reem Island in Abu Dhabi, Tungsten operates under the executive leadership of Christian Desjardins, the current Senior Executive Officer and Licensed Director. Tungsten obtained its Financial Services Permission (FSP) from the Financial Services Regulatory Authority (FSRA), authorizing it to conduct the Regulated Activity of Providing Custody in relation to Virtual Assets as an Authorized Person.

Tungsten holds the cryptographic keys in cold storage, maintaining them offline and isolated from internet access. Custody wallets are safeguarded with physical access controls similar to bank-grade security protocols. To move funds, a transaction with the Tungsten team must be initiated subject to passing rigorous security checks.

Notably, according to section 30(4)(a) of the Financial Services and Markets Regulations (FSMR), Tungsten operates within defined limitations and stipulations for its Regulated Activities. It does not deal with Retail Clients, as defined in the Conduct of Business (COBS) Rulebook.

In 2018, the ADGM established the first regulatory framework for virtual assets, setting a global benchmark. The United Arab Emirates (UAE) remains to be ahead of the curve, offering innovation-friendly regulations that ensure protection for institutional investors and businesses. Ultimately, this regulatory clarity is expected to attract a growing number of players, and bring new momentum to the UAE’s dynamic crypto scene.