As BitGo announced on February 10, it will now offer custody services from Germany and Switzerland with two new units.
The company based in Palo Alto, California, has been successfully offering services in the field of cryptocurrencies and the secure storage of digital assets since 2013. With the founding of BitGo Trust Company in 2018, it introduced the first regulated custodian purpose-built for digital assets.
BitGo says it processes over 20 percent of all global Bitcoin (BTC) transactions and supports more than 50 currencies and tokens today. The company claims to count the world’s largest cryptographic currency exchanges in more than 50 countries among its customers.
BitGo custody — market entry in Germany and Switzerland
With the experience as the first regulated custodian for digital assets in the U.S., BitGo now wants to expand in Europe. With this step, the company intends to offer institutional customers in Europe comprehensive services in the areas of security, custody, and liquidity in connection with digital assets.
CEO Mike Belshe explains the establishment of BitGo GmbH in Switzerland and BitGo Deutschland GmbH with the high demand in Europe. “We saw a lot of demand in Europe last year and it was clear that clients there needed to be able to work with European based firms that were regulated within specific jurisdictions”, he said.
The two new entities are regulated by different financial authorities (BaFin and FINMA). BitGo wants to give its customers the opportunity to choose the most appropriate jurisdiction for their business.
“Switzerland and Germany have both become important European centers for digital assets as well as for forward-thinking regulatory frameworks. Regulatory compliance is a prerequisite for our clients, and we have been impressed with the understanding and support of Swiss and German regulators,” Mike Belshe stated.
BitGo’s German entity, BitGo Deutschland GmbH, is currently providing custody services in Germany and will apply for regulatory approval. The Swiss subsidiary is a member of the country’s most important self-regulatory organization, the Financial Services Standards Association (VQF). This, in turn, is under the supervision of FINMA.
The number of crypto service providers in Switzerland is increasing
In Switzerland, several crypto banks and crypto service providers are already active in various sectors. With BitGo, a well-known American player is now joining them. This not only creates healthy competition and possibly just as healthy cooperation; every reputable provider with experience and background enriches the scene and gives additional weight to the crypto country of Switzerland.
The increased interest that traditional banks are showing in various crypto services also plays a role. With a few exceptions, banks do not develop their own tools and infrastructures. Rather, they rely on existing service providers in order to offer their own customers newly demanded services.
FINMA recently announced its intention to lower the threshold for unidentified crypto transactions from around €5,000 to €1,000.
New guidelines also came into force in Germany at the beginning of the year.