BitGo Expands to Brazil for Crypto Custody Services

BitGo has started a regulated subsidiary in Brazil, named BitGo Brasil Tecnologia Ltda., to offer crypto custody and digital treasury services amid the country’s changing regulatory landscape.

Luis Ayala, BitGo’s LatAm Director, plays a vital role in this expansion, aiming to establish BitGo as an ally to banks while avoiding direct competition in the custody market.

Local Custody Mandates Boost BitGo’s Role

The establishment of BitGo’s subsidiary is poised to help financial institutions in Brazil as new regulations require local custody of digital assets. This could lead to BitGo becoming a crucial partner for institutional clients. Luis Ayala, LatAm Director, BitGo, said, “We don’t want to compete with these banks’ custody market, but we want to be partners to help them do this clearly and securely” – Link.

The enforced local custody requirements by the Brazilian Congress could influence the adoption of BitGo’s services, allowing them to form strategic alliances. Past efforts in Germany showcased similar success by securing regulatory compliance ahead of the crypto-regulation curve.

Brazil Expansion Mirrors German Successes

BitGo’s strategic move in Brazil mirrors its earlier efforts in Germany, where it secured MiCA-compliant operations, offering a blueprint for success in aligning with evolving regulations. Past initiatives have ensured an advantage with large financial institutions.

Experts suggest that BitGo’s proactive approach, as seen before in Europe, may serve as a model for integration, given the new regulatory environment.