Asset Reality Achieves FCA Approval to Deliver Comprehensive Crypto Custody Services for UK Asset Recovery

Asset Reality, the world’s first end-to-end asset recovery operating system, has officially secured registration as a Virtual Assets Service Provider (VASP) with the UK Financial Conduct Authority (FCA). This critical regulatory milestone enables Asset Reality to provide bespoke crypto custody services to UK law enforcement and government agencies, addressing a significant gap in the management of seized digital and traditional assets.

Historically, asset recovery practitioners have faced considerable challenges due to fragmented tools and processes, relying on a combination of spreadsheets, hardware wallets, exchanges, and external consultants to manage seized assets. This fragmented approach has created inefficiencies, elevated risk, and complicated compliance. Asset Reality’s platform fundamentally transforms this landscape by delivering a unified, secure, and transparent operating system that supports every stage of asset recovery, including seizure, inventory management, valuation, liquidation, and regulatory compliance.

“A key challenge for agencies has been navigating disjointed tools and complex workflows,” said Aidan Larkin, Co-founder and CEO of Asset Reality. “Our platform consolidates all asset recovery functions into one purpose-built system that ensures comprehensive coverage of physical and virtual assets. This makes the process more efficient, accountable, and fully auditable.”

Differentiating itself from retail-focused custodians and crypto exchanges, Asset Reality exclusively serves authorized public sector bodies, eliminating exposure to pooled assets and trading risks. Client assets are segregated and traceable both through the platform and on-chain via blockchain explorers. To date, Asset Reality maintains a flawless compliance record, with no regulatory penalties or breaches.

The FCA registration under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) confirms Asset Reality’s commitment to stringent anti-money laundering (AML) and counter-terrorist financing (CTF) standards. The company has implemented rigorous controls, including risk management frameworks, client due diligence, transaction monitoring, and comprehensive staff training programs.

“This registration represents a pivotal development for the UK’s seized asset ecosystem,” noted Lynette Mapp, General Counsel at Asset Reality. “It demonstrates how regulated infrastructure can effectively support law enforcement and judicial bodies handling complex virtual asset cases, while maintaining the highest standards of compliance and transparency.”

Arun Srivastava, Partner at Paul Hastings (Europe) LLP, who advised on the registration, commented: “Asset Reality’s successful FCA registration amidst the regulatory complexities of this sector is a clear testament to their operational excellence and compliance capabilities.”

As digital assets continue to play an increasingly prominent role in criminal investigations globally, Asset Reality’s FCA-approved platform stands poised to become an indispensable tool for secure, transparent, and efficient asset recovery, setting a new benchmark in the field.