You are at: Home » BitGo Approved as Custodian under SIX Exchange Regulations, Expanding Europe Presence

BitGo Approved as Custodian under SIX Exchange Regulations, Expanding Europe Presence

Author
Last updated on:
Fact Checker's Full Profile
Fact Checker
Author's Full Profile

BitGo has been granted approval as a custodian under the SIX Exchange Regulation Crypto-Asset Rule, expanding its operations within Europe.

BitGo has been granted approval as a custodian under the SIX Exchange Regulation Crypto-Asset Rule, expanding its operations within Europe’s crypto market. The approval allows BitGo to offer regulated custodial services in line with Swiss financial regulations.

In a recent announcement on X, the company said that the approval from SIX Exchange, Switzerland’s principal stock exchange, strengthens its reputation as a provider of digital asset storage solutions. BitGo Europe’s custodial services will be backed by a $250 million insurance policy.

“This approval marks another milestone in our mission to make secure, regulated custody available for clients around the world,” the exchange wrote.

EXPLORE: How to Buy ICO Tokens in 2024: Beginner’s Guide!

What is SIX Exchange?

SIX Exchange, part of the broader SIX Group, is known for its role in Swiss financial markets, offering services in securities trading, financial information, and payments.

As Switzerland’s leading stock exchange, it lists a diverse range of financial products, from stocks to exchange-traded products, further solidifying BitGo’s positioning in regulated European markets.

Back in February, SIX Swiss Exchange introduced new rules aimed at regulating issuers of exchange-traded products (ETPs) and derivatives with underlying crypto-assets. The regulations came in partnership with the Swiss Financial Market Authority (FINMA).

A key aspect of the regulations is that crypto-asset collateral must be held by a prudentially supervised custodian. Previously, issuers of ETPs often collateralized products with underlying crypto-assets held by non-supervised custodians, which is no longer permissible.

The updated rules also revise eligibility criteria for crypto-assets, requiring a minimum market capitalization of $500 million, daily liquidity of $50 million over 30 days, and at least 180 days of trading history. Additionally, the prospectus for ETPs must now include detailed risk disclosures about the volatility and potential criminal activities.

EXPLORE: Top 17+ Best Crypto to Buy Now in September 2024

BitGo Obtains License in Singapore

Meanwhile, BitGo has recently obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore. The license allows BitGo to provide regulated crypto payment services, including custody and trading solutions, for its Singaporean clientele.

In August 2023, BitGo, based in Palo Alto, California, raised $100 million in Series C financing at a $1.75 billion valuation. At the time, the company planned to use the funds for strategic acquisitions and global expansion.

More recently, it was revealed that South Korea’s leading telecom and financial giants, SK Telecom and Hana Financial Group, have become major shareholders in the Korean branch of BitGo.

BitGo, founded in 2013, manages approximately $70 billion in assets under custody, with about 20% of on-chain Bitcoin transactions facilitated through its infrastructure.

EXPLORE: Buying Bitcoin with PayPal (Beginner’s Guide)

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

Ruholamin Haqshanas is an accomplished crypto and finance journalist with over three years of experience. He has been featured in various high-profile outlets, including Cryptonews.com, Investing.com, 24/7 Wall St, and Business2Community.

View all Posts by Ruholamin Haqshanas

Free Bitcoin Crash Course

Learn everything you need to know about Bitcoin in just 7 days. Daily videos sent straight to your inbox.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
We hate spam as much as you do. You can unsubscribe with one click.
We hate spam as much as you do. You can unsubscribe with one click.
Scroll to Top