BitGo Establishes Regulated Custodial Entities in Germany and Switzerland
BitGo, a leading cryptocurrency security company, made headlines in February 2020 when it announced the establishment of two regulated custodial entities in Germany and Switzerland.
This strategic move was driven by BitGo’s efforts to expand its custody services across Europe and enhance its presence in these key markets. The company recognized the growing demand for secure storage solutions amidst the increasing adoption of cryptocurrencies within the region.
Building Trust Through Regulation
The decision to establish regulated custodial entities was a deliberate step towards building trust and confidence among investors and institutions. By operating under regulatory frameworks, BitGo aimed to provide a level of assurance that its services meet industry standards and adhere to compliance requirements.
This commitment to regulatory compliance has positioned BitGo as a trusted custodian in the cryptocurrency ecosystem. It has helped foster stronger relationships with clients looking for secure storage solutions while complying with legal obligations.
Custodial Services in Germany
In Germany, BitGo introduced BitGo GmbH, a fully regulated entity under the German Banking Act (KWG). This subsidiary enables BitGo to offer custodial services for digital assets, catering to the specific needs of German clients. By adhering to the stringent regulations set by government authorities, BitGo establishes itself as a reliable player in the German market.
BitGo GmbH’s compliance with regulatory requirements also ensures the company’s operations are subject to regular audits, which affirms its commitment to maintaining the trust of its clients and stakeholders.
The Benefits of Swiss Regulations
In Switzerland, BitGo established BitGo (Switzerland) AG, a regulated entity under the Swiss Financial Market Supervisory Authority (FINMA). Switzerland, widely known for its favorable regulatory environment, provides an ideal jurisdiction for companies operating in the cryptocurrency space.
By setting up a regulated custodial entity in Switzerland, BitGo benefits from the country’s reputation as a hub for financial innovation and its commitment to fostering blockchain and cryptocurrency-based businesses. The company can now cater to Swiss clients’ demand for secure custody services while complying with local regulations.
A Competitive Edge
With the establishment of these regulated custodial entities, BitGo has gained a competitive edge by offering secure and compliant storage solutions tailored to the German and Swiss markets. By leveraging its extensive experience and robust security protocols, BitGo continues to build trust among institutional investors, asset managers, and individuals seeking a reliable custodian for their digital assets.
Conclusion
The establishment of regulated custodial entities in Germany and Switzerland has solidified BitGo’s position as a key player in the cryptocurrency custody space. By prioritizing regulatory compliance and offering secure storage solutions, BitGo reflects its commitment to building trust and meeting the evolving needs of clients in Europe’s expanding digital asset market.
