Digital asset custodian BitGo has expanded its presence in Europe with the opening of new custodial entities in Switzerland and Germany.
Announced on Monday, the Swiss entity, BitGo GmbH, is supervised under the Swiss Financial Market Supervisory Authority (FINMA) while the German sister – BitGo Deutschland GmbH – will apply for regulatory approval in November when the application window will open.
With these new entities, the company made its entry into the European market and this was driven by the massive demand in the continent.
The company also chose both the locations carefully given their strategic importance for expanding the crypto business.
In an email response to Finance Magnates, Mike Belshe, CEO of BitGo, pointed out the importance of both the countries and their regulatory frameworks to establish digital asset businesses.
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“Germany has traditionally been a leader in the EU’s adoption of new financial regulations…Germany is also an epicenter for traditional financial services and, since the adoption of AML5 and their new crypto guidelines, has become an important market for future growth,” Belshe noted.
“Similarly, Switzerland has long been a hotbed for innovation in the crypto asset space with significant advancements in a number of areas, such as a reliable legal and regulatory framework for digital assets. Switzerland is known for building an ecosystem where participants can come together to agree on new financial instruments and how they will be traded, settled and secured.”
Aiming to become a global company
BitGo started to offer digital asset custodial services in 2018 with its establishment of an entity in the United States. With the addition of two new European entities, the company will now offer its institutional client base option to choose their preferred jurisdiction.
Belshe also admitted that the company’s expansion to Germany and Switzerland is a part of its “global growth strategy.”
Last week, BitGo enabled its professional client base to trade cryptocurrencies directly from the vault-stored funds, Finance Magnates reported.