Superintendent Lacewell Announces Grant of DFS Trust Charter to BitGo to Engage In New York’s Growing Virtual Currency Market
March 4, 2021
SUPERINTENDENT LACEWELL ANNOUNCES GRANT OF DFS TRUST CHARTER
TO BITGO TO ENGAGE IN NEW YORK’S GROWING VIRTUAL CURRENCY MARKET
Superintendent of Financial Services Linda A. Lacewell announced today that the New York State Department of Financial Services (DFS) has granted a charter under New York Banking Law to BitGo New York Trust Company LLC (Bitgo NY) to operate as a limited liability trust company. With DFS approval, BitGo NY is authorized to provide digital asset custody and other related services to New York customers, including DFS supervised entities authorized to engage in virtual currency activity.
“New York’s dynamic and fast-moving crypto industry continues to mature and grow,” said Superintendent Lacewell. “The approval of this new charter is another step towards helping New Yorkers meet their need for digital asset custodial and related services and will promote the continued growth of the virtual currency industry in the State, helping diversify and innovate New York’s economy at a time when we are working to rebuild and recover New York’s economy.”
Including the charter granted to BitGo NY, to date DFS has approved 28 charters and licenses for companies engaged in virtual currency business activity.
“We are extremely proud to receive the approval for a trust charter from NYDFS to serve the world’s premier financial organizations that are based in New York State,” said Mike Belshe, CEO, BitGo. “The past year has been exceptional for BitGo and the digital asset markets overall, primarily due to the influx of large financial services institutions that bring a new level of credibility, liquidity and stability to the crypto ecosystem.”
DFS began licensing firms engaged in virtual currency businesses activity in 2015 and under the leadership of Superintendent Lacewell, DFS has updated the Department’s regulatory approach to keep pace with changes in the market. This includes streamlining the process for companies to adopt new coins through a self-certification framework and a coins Greenlist, making use of the Department’s conditional licensing authority, and providing new clarity about DFS processes and expectations to applicants and licensed entities. These achievements are the result of close engagement with market participants and other stakeholders.
Additional information regarding DFS’s regulation of New York’s virtual currency marketplace can be found on the DFS website.