The New York State Dept. of Financial Services has given BitGo a Trust License to commence its operations in the State. BitGo announced on few days prior while expressing its excitement over the Trust License.
According to BitGo CEO Mike Belshe, the company is very proud of the opportunity to serve the prominent financial organizations operating in NY.
With this Trust Charter, the company can legally provide its institutional-grade custodial services to its clients in New York. They can also provide KYC (Know Your Customer) and Anti-Money Laundering measures to guide its operations. BitGo will also expand its service to allow clients to store their cryptographic keys offline.
All these measures will enable large organizations operating in NY to make large crypto investments without attracting legal actions.
Previous Struggles of BitGo
BitGo is an independent digital asset custodian backed by Goldman Sachs. Palo Alto founded the company in 2013 to provide institutional-grade crypto storage for both individuals and businesses. The company has since garnered the support of other industry firms such as Galaxy Digital Ventures and Digital Currency Group.
The company didn’t become an industry leader without providing various features and functionalities to facilitate its client’s crypto investments. It allows its numerous clients to invest in diverse digital assets by providing a stable environment, support for many cryptocurrencies, and many security layers.
BitGo is at the frontlines of the crypto industry when it comes to institutional-grade crypto security. The company was the first to offer a multi-signature hot wallet that allows institutional investors to store cryptocurrencies.
Now, BitGo supports more than 400 coins and has more than $2 billion worth of assets stored in its wallet. It also processes over 20% of all Bitcoin transactions worldwide, plus at least $15 billion crypto transactions every month.
Implications of New York Trust License
BitGo started the pursuit of the NY Trust Charter in August 2020. The company applied for this license to operate independently but in compliance with crypto regulations in New York. So, it’s a great feat to accomplish in a few months gap after the application.
But with this License, BitGo will come under more stringent regulatory scrutiny. Let’s recall that the firm was under the Treasure Department’s radar due to an enforcement action that came up in December.
Even though the company agreed to pay $100,000 in settlement for violating sanctions rules, the Foreign Assets Control Office wanted them to pay $50 million.
The good news is that BitGo is not new to regulations as its subsidiaries in Germany and Switzerland are operating under strict regulations in the States.