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BitGo aims to become a qualified cryptocurrency administrator in New York State

August 27, 2020

The financial services company for digital assets 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, particularly the recent granting of approval by the Office of Currency Auditor to banks authorized by the federal government to protect cryptocurrencies. .

Due, BitGo expects “a dramatic increase in market demand for its products and services from banks, pension funds, hedge funds and other trustees”.

BitGo aims to become a qualified cryptocurrency administrator in New York StateBitGo aims to become a qualified cryptocurrency administrator in New York State

BitGo has officially filed a New York Statute of Trust with the New York State Department of Financial Services (NYDFS). This would enable you to work as a qualified custodian under the New York State Banking Law.

If approved, BitGo New York Trust would give institutional investors control over NYFDS, customer and anti-money laundering compliance, offline crypto key cold storage, and insurance coverage in today’s market of up to $ 100 million. in digital assets.

BitGo is known in the crypto industry for pioneering multi-signature crypto technology, which provides greater security for cryptocurrency wallets.

Earlier this year, the company established two new custody companies in Switzerland and Germany, each regulated by the authorities in their respective jurisdictions.

NYDFS is one of the primary regulators for cryptocurrency-related companies in New York State, issuing a well-known and sophisticated operating license for certain cryptocurrency service providers called a BitLicense.

Last fall, Fidelity Digital Asset Services has chartered from NYDFS to act as a limited liability trust company and provide a platform for the custody and execution of cryptocurrencies for institutional and retail investors in the state.

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