Digital Asset Financial Services BitGo is applying to be a qualified cryptocurrency administrator in New York State.
In its August 25 announcement, BitGo said its decision was due to new regulatory developments in the United States. In particular, the Office of the Currency Auditor recently granted nationwide chartered banks permission to hold cryptocurrencies.
As a result, BitGo expects “a significant increase in market demand for its products and services from banks, pension funds, hedge funds and other agents.”
BitGo has formally applied to the New York State Department of Financial Services (NYDFS) for the New York Trust Charter, which enables it to serve as a qualified trustee under the New York State Banking Law.
If approved, the BitGo New York Trust would provide institutional investors with NYFDS oversight, KYC compliance and anti-money laundering, cold offline storage for encryption keys and insurance coverage in today’s digital asset market of up to $ 100 million.
BitGo is known in the crypto industry for pioneering multiple signature encryption technology that provides high quality security to cryptocurrency wallets.
At the beginning of this year, the company founded two new escort subsidiaries in Switzerland and Germany, each of which regulates the authorities in their respective jurisdictions.
NYDFS is one of the primary regulators for crypto-related companies in New York State and grants a well-known and accurate operating license to certain cryptocurrency service providers known as BitLicense.
Last fall, Fidelity Digital Asset Services acquired a charter from NYDFS to act as a limited liability trust, providing a cryptocurrency custodian and enforcement platform for institutional and individual investors in the state.