The United States has approved crypto startup BitGo as a qualified custodian for digital assets.
Thursday BitGo announced that the South Dakota Division of Banking has approved of the BitGo Trust, the company has spent the majority of 2018 attempting to launch a regulated custodian entity. This approval approves BitGo to institutional investors a regulated storage solution for digital assets.
Chief Compliance and Legal Officer Shahla Ali told CoinDesk:
"Currently ... we offer an online hot wallet solution, which is available to anyone to download our software and store their coins. We also offer a custodial solution which is a combination of hot and cold wallet," she said, although "that offering, though secure, is not regulated like the Trust."
As well as:
"The trust 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 Trust is] for institutional clients … especially for those who are registered advisors and broker dealers."
Ali noted that even though BitGo was only approved by South Dakota regulators that "generally other states will give you reciprocity in the sense that other states have money transmission laws and they'll exempt you from money transmission requirements."
BitGo is ready to accept customers who are ready to store their assets with the trust South Dakota regulations provide 30 days for the general public to appeal against the decision.
Once this period has passed BitGo will immediately begin taking custody of digital assets.