Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Bitgate will use BitGo’s robust software solutions to offer cold storage services as well as create and store private keys that remain in Japan. The two companies will function as per the newly set regulations of the Japanese Financial Services Agency (JFSA).
Japan-based regulated crypto trading platform Bitgate partners with financial assets services provider BitGo to offer cold storage services to its customers. On Wednesday, September 1, BitGo announced that it will provide the “Self-Managed Custody” service to the exchange.
Besides, BitGo will offer these custodial services meeting the newly introduced regulations by the Japanese Financial Services Agency (JFSA). As on May 1, 2020, the FSA introduced a major regulatory change in the way it sees the operations of overseas crypto companies doing business in Japan.
To protect the local investors, the FSA has also made it mandatory for overseas companies to comply with the new regulations. Furthermore, looking at the global experience and robust software solutions of BitGo, Bitgate decided to proceed.
Japan’s financial services giant Daiko Holdings acquired a controlling stake in Bitgate earlier this year. The FSA-licensed crypto exchange has been working with the regulators to create a transparent crypto environment. Akio Ito, CTO at Daiko Holdings said:
“Japan continues to lead the way in Virtual Asset (Cryptocurrency) regulation, and Bitgate is in a prime position to offer a compliant and robust platform to its customers. Bitgate is FSA licensed and backed by Daiko Holdings, one of the leading financial markets players in the traditional stock trading space. Together with Daiko’s expertise, Bitgate’s specialization in the virtual asset space, and BitGo’s security infrastructure, we have a compelling product to offer to investors in Japan.”
BitGo’s Self-Managed Custodial Solution
BitGo said that it has built its custodial solution specifically for the Asian market. It enables special features like multi-signature wallets, a technology it pioneered in 2013. Besides, it also ensures that there’s no single point of failure leading to any breach or loss.
Using BitGo’s Custodial Solution, Bitgate can generate and store its own private keys inhouse and in Japan. It can also leverage BitGo’s software products to secure customer assets without violating the FSA requirements. Speaking about this new partnership, Mike Belshe, CEO, BitGo said:
“BitGo Inc.’s unique, custom Self-Managed Custody solution was specifically designed for the Asian market and is now trusted by 25% of the FSA licensed exchanges. Bitgate is relying on our long-established experience and proven track record to eliminate single points of failure and secure customer assets. Additionally, BitGo’s ability to seamlessly integrate the solution for the client enables them to be fully operational quickly.”
This could be probably BitGo’s big-ticket in Japan, Asia’s biggest crypto market. More importantly, this partnership will encourage other legit crypto firms to expand its service while following the regulators framework.