It was revealed last month that BitGo, a leading cryptocurrency custodian, had received the necessary approval from authorities in the country to clear it to operate in Italy. This was news that reverberated throughout the global crypto market, and now, after several months of waiting, customers are able to use BitGo as their virtual wallet for Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and Bitcoin Cash (BCH). With this move, it’s expected that Italy will quickly become one of the top 10 largest crypto markets in the world.
What is a Crypto Custodian?
A crypto custodian is a type of financial institution that specializes in providing custody services for cryptocurrency assets. In other words, they provide a safe and secure way for investors to store their digital currency holdings. The Rome-based company has been waiting on regulatory approval from the Bank of Italy to operate as a crypto custodian since March this year. The delay was due to unclear guidelines on how the industry should be regulated by the country’s central bank. Bitgo has now been given the green light, making it the first company with such status in Europe’s second largest economy.
No new laws have been passed regarding cryptocurrencies yet but there are plans for regulations around Initial Coin Offerings (ICOs) and businesses operating as brokers or exchanges will be subject to stricter oversight and regulation when trading cryptocurrencies later this year.
What does the approval mean for traders?
The news that BitGo has finally been approved to operate as a custodian in Italy will be welcomed by cryptocurrency traders in the country. The approval means that BitGo can now offer its services to exchanges and other businesses that hold digital assets on behalf of their customers. This is a big win for BitGo, as it opens up a whole new market for the company. Previously, Italian crypto traders were unable to use BitGo’s custody service due to the lack of regulation in place. Crypto firms still face difficulties when dealing with banks: However, although this is good news for many crypto firms operating in Italy, there are still difficulties when it comes to banking. As previously reported by CoinDesk – Italian banks have closed down all bank accounts associated with any form of cryptocurrency-related activity since last September.
An Overview of European Crypto Markets
While BitGo’s custodian services have been available in other countries for some time now, the company has finally received the green light to operate in Italy. This is good news for those who want to invest in cryptocurrencies but are hesitant to do so because of concerns about security. However, it’s important to note that BitGo is not the only crypto custodian out there. Other companies, such as Coinbase and Xapo, have also received similar approvals from regulatory bodies. So if you’re looking for a custodian for your crypto investments, know that there are plenty of options available. What you choose will depend on what type of service you need, where you live, and how much money you want to store with them. For example, while Coinbase offers many of the same features as BitGo, they require users to link their bank account or credit card to their account before they can make deposits or withdrawals. On the other hand, BitGo only requires verification using documents like an ID or passport before letting customers buy cryptocurrencies without providing any personal information at all.
Are There Other Approvals Like This Out There?
After much anticipation, BitGo has finally been approved to operate as a crypto custodian in Italy. This is a big deal because it’s one of the first major approvals of its kind. So far, BitGo is the only digital asset custodian to be regulated by a European country. But this could open the door for other approvals down the road. So what does this mean for the future of digital asset custody? Only time will tell. But for now, it’s a big step forward. And it might encourage other countries to do the same thing. Time will tell how things play out but one thing is clear: It’s going to take more than just regulatory approval before cryptocurrencies are widely accepted as an alternative form of payment and store of value. There are still questions about how they can be bought and sold, their volatility and regulation across jurisdictions that need answers before cryptocurrency becomes mainstream financial instrument.
Italian regulators approve first custody solution, paving way for institutional adoption
After a long and arduous process, crypto custodian BitGo has finally been cleared to operate in Italy. This is a major development not just for BitGo, but for the cryptocurrency industry as a whole. With institutional investors looking for safe and reliable ways to store their digital assets, this approval paves the way for greater adoption of cryptocurrencies. BitGo is one of the most well-respected custody solutions in the space, and we’re excited to see what comes next for them (and for crypto) in Italy. In addition to gaining regulatory approval, BitGo was also announced as an IOSCO partner last week. We’ll be keeping an eye on this story to see how it develops. The market will also be closely watching BitGo’s decision to list ETC at the end of 2018 after controversially delisting it back in 2017. They cited network stability concerns as the reason behind the initial delisting – something that they clearly have taken into account with their latest decision. It will be interesting to see how things unfold now that they’ve made this change, and if other exchanges follow suit.
Another Step Forward For Institutional Adoption Of Cryptocurrencies
The SEC has been clear that it does not consider cryptocurrencies to be securities. In fact, the agency has gone as far as to say that bitcoin is not a security. The reason for this is because cryptocurrencies are decentralized and are not subject to the control of any one entity. This means that there is no central point of failure, which is one of the key characteristics of a security. These decentralization qualities have led many institutional investors to believe that cryptocurrencies represent a new type of asset class that they need to invest in. However, these investors face two major challenges: custody and regulation. BitGo Custody provides institutions with the first true solution for both these challenges. With BitGo, companies can store their digital assets on our platform with strong encryption and multi-signature technology. Moreover, regulatory compliance is built into our platform so that companies know exactly what they’re doing when investing in cryptocurrencies.
We see cryptocurrency as an entirely new asset class but we also recognize that getting started can be difficult without all the right tools at your disposal.
Why Does The SEC Consider Bitcoin To Be Not Securities?
The SEC has been very clear that they consider Bitcoin and Ethereum to be not securities. Why? Well, for a few reasons. First, both BTC and ETH are decentralized – there is no one person or group in control of them. Second, neither BTC or ETH are investments; they’re currencies. You can’t invest in a currency; you can only trade it. And finally, when you own cryptocurrency, all your money is at risk of theft because it’s stored on the blockchain.
However, what about tokens created by initial coin offerings (ICOs)? What about security tokens? That’s where the SEC draws the line:
An ICO involves an investment of money in a common enterprise with an expectation of profits derived from the entrepreneurial or managerial efforts of others.
The SEC considers these types of tokens as securities and will have no tolerance for those who may think otherwise. In other words, if your token was created as an investment with someone else providing managerial effort to increase its value then it will most likely be classified as a security.