Cryptocurrency company BitGo swings at NYDFS license

Cryptocurrency company BitGo swings at NYDFS license
CONTENT

  • BitGo Applied for New York Trust License

  • BitGo is waiting for an influx of clients from the professional segment

  • Crypto Custodians Feel Increasing Competition

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Cryptocurrency company specializing in custody services and security solutions in the cryptocurrency industry has applied for a license from the New York regulator

Cryptocurrency company BitGo swings at NYDFS license

BitGo has formally applied to the New York State Department of Financial Services (NYDFS) for a Trust Charter to act as an “Independent Regulated Qualified Custodian” under state banking law.

“With this license, BitGo will be able to meet strong demand from the world’s leading New York-based institutional investors who want to store large volumes of digital assets with the highest levels of security, regulatory oversight and operational efficiency,” the statement said..

New clients – new services

The Commercial Banking Regulatory Commission (OCC) recently issued a directive allowing banks to hold cryptocurrencies. According to BitGo representatives, this will provoke a sharp increase in market demand for the company’s products and services among banks, pension funds, hedge funds and other asset managers..

Cryptocurrency company BitGo swings at NYDFS license

If the regulator approves the application, BitGo New York Trust will offer customers a new level of security and reliability. In particular, the company will have to comply with stringent requirements for customer identification, as well as to counter money laundering. In addition, the company will offer encryption technologies with multiple signatures, the ability to cold store cryptocurrencies and a number of other services that may be of interest to professional market participants..

Read about the state of affairs with the regulation of cryptocurrencies in Russia in our article.

Growing competition

In July of this year, the Commercial Banking Regulatory Commission – an independent bureau under the US Treasury Department – issued an open letter explaining that national banks and federal savings associations are free to accept crypto assets for safekeeping. Thus, traditional players in the digital asset trust segment have emerged with new and very solid competitors. Earlier, the editorial staff of BeInCrypto reported that the largest bank in South Korea will offer custody services in the field of cryptocurrencies. Experts believe the move will encourage crypto depositories to raise their level of regulatory compliance.

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