BitGO Expands Cryptocurrency Services To Europe, Adds Regulated Custody

The American digital asset trust and security company, BitGo, expands its services to Europe. The company is opening two new custodial entities in Switzerland and Germany.

BitGo Goes To Europe

Reported earlier today, the popular U.S.-based digital asset management company is expanding its presence in Europe. With two new custodial entities in Germany and Switzerland, BitGo will offer institutional investors digital asset financial services in Europe, as well.

According to BitGo CEO, Mike Belshe, the two new entities come as a result of the increased interest across the continent:

“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.”

According to the report, the company’s Swiss entity (BitGo GmbH) is a member of the Financial Services Standards Association (VQF). On the other hand, the German entity, already providing custodial services in the country, will apply for regulatory approval in November 2020, when the application window opens.

BitGo Trust Company originated in the U.S. in 2018 to provide regulated custodian services for digital assets. Adding the two new entities in Europe, its institutional customers will be able to operate with the jurisdiction that fits them best.

Europe’s Acceptance

As of January 10th, the E.U. introduced the Fifth Anti-Money Laundering Directive (5AMLD). It delivers enhanced regulations, including extensive Know-Your-Customer (KYC) checks, transaction monitoring, and companies needing to file suspicious activity reports (SARs) with law enforcement.

The new bill applies to cryptocurrency-related businesses based in Europe. It required lots of amendments from firms to fit into the regulatory framework, which will affect BitGo’s two new entities, as well.

With that being said, Belshe seems to think that Germany and Switzerland are rather opened in terms of cryptocurrency adoption:

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.

Indeed, both countries appear more receptive toward digital assets. German banks, for example, are looking to incorporate Bitcoin storage as a new feature.

Additionally, Switzerland has its own cryptocurrency bank dubbed SEBA. It received a banking license to operate as a financial service provider focusing mainly on digital assets by the Swiss Financial Market Authority. SEBA is expanding quickly and recently announced that it will conduct second-stage fundraising of 100M Swiss francs.