Bitgo’s Crypto Custody Service for BTC and Other Altcoins Gets Regulatory Approval in the US
BitGo Inc. one of the most important startups in the field of security applied to the world of crypto and blockchain technologies, received approval from South Dakota State’s Division of Banking for its branch BitGo Trust Company to legally operate within the state.
BitGo defines itself as “the market leader in institutional-grade investment services.” Its proven robustness and the high quality of its services have led the company to consolidate as the world’s largest processor of on-chain bitcoin transactions, processing 15% of all global bitcoin transactions, and $15 billion per month across all cryptocurrencies.
In a press release published today , Mike Belshe, BitGo’s CEO spoke about the importance of approving a custody service and the reasons that make BitGo a better choice over exchanges and traditional custodians:
“Custody has been the missing piece of cryptocurrency market infrastructure, and this gap has kept institutional investors out of the market … Traditional custodians don’t have experience handling cryptocurrency. Exchanges that double as custodians present a conflict of interest and raise regulatory concerns. BitGo Trust Company is a qualified custodian, and therefore the only custody offering that delivers the highest levels of both security and regulatory compliance.”
South Dakota: Just the First of Many Good News to Come for BitGo
BitGo has managed to make a name for itself as a global company, offering its services to clients in more than 50 countries around the world. With the approval of such a new service, it is expected that its growth inside the United States will let it reach clients handling large sums of money.
After the decision of the state of South Dakota, it is expected that a precedent will be set for other states to issue similar permits. According to Shahla Ali, BitGo’s Chief Compliance and Legal Offer this legal “chain” could occur more easily now that South Dakota took the first step.
“Generally other states will give you reciprocity in the sense that other states have money transmission laws and they’ll exempt you from money transmission requirements.”
The BitGo Custody Service will be available to those customers who need the security of having their resources ‘in good hands,’ offering certain advantages especially at the time of establishing responsibilities in case of security breaches or unforeseen events.
Some of the most important features of BitGo Custody are:
100% cold storage technology in bank-grade Class III vaults