US regulatory authority approves BitGo for the status of a custodian for crypto and the market is booming during positive news.
The digital currency security startup BitGo has been granted approval of a custodian for crypto and other virtual assets after the company put in a request for permission to act as a digital asset custodian. The company will bring its clients the offer for a regulated custody solution made with their crypto investments specifically in mind.
Bitcoin currently offers an online hot wallet solution which can be installed and used for digital asset storage to be secured. Despite this, BitGo has a custodial solution which combines hot and cold wallets thought it hasn’t been regulated.
The chief compliance and legal officer Shahla Ali at BitGo explained:
“The trust company will enable company will enable us to offer a qualified custodial offering that is regulated, that has the money laundering and know your customer requirements. Our custodian offering already has money laundering and KYC requirements… but the truth is for institutional clients.. Especially for those who are registered advisors and broker dealers.!
The new offering mainly looks at institutional traders as custodial services would allow them engaging into cryptocurrency market and acquiesce with the regulatory requirement to custody digital assets.
After South Dakota regulators gave the green light to BitGo, the business believes that the other states won’t prevent it from working in their jurisdiction.
The news added to the pleasing drive on the digital currency markets thus making positive environment for an extended recovery from the recent decline across the board. At the time of writing Bitcoin is priced at around $6,550, Ethereum is trading with a 15% increase since yesterday at $220 and XRP is about $0.2830.