BitGo plans to obtain NYDFS sample license
BitGo, a cryptocurrency company that specializes in custody and security technology for the digital asset industry, has filed an application with the NYS Department of Financial Services for a license to operate as an “independent regulated qualified depository”. This is required by the laws of the jurisdiction.
Thanks to this license, the company will be able to meet the strong demand from large institutional investors who operate mainly in New York. Recently, they want to keep their cryptocurrencies in an enhanced security environment.
Recently, the Commercial Banking Regulatory Commission (OCC) issued a directive according to which credit institutions were able to store cryptocurrencies. According to a statement from BitGo representatives, this document will increase the demand for its products among banks, numerous funds and other asset management companies.
If the regulator approves the application, BitGo will be able to offer users a new level of security. For example, it will have to comply with high requirements for customer identification and introduce anti-money laundering tools. The company also plans to offer customers to introduce new encryption technologies with multiple signatures, the possibility of cold crypto storage, in which access to funds will be stored offline, since such a technique is recognized as the most secure.
In July of this year, the OCC published an appeal to market participants, in which it clarified that federal savings associations and banks have the right to accept cryptocurrencies for safekeeping. Thus, most cryptocurrency companies have new competitors.