BitGo, a digital asset financial services provider, announced on Wednesday that Bitgate, a Financial Services Agency (FSA) regulated exchange based in Japan, has selected its Self-Managed Custody solution to hold Bitgate customers’ digital assets securely and meet new regulations.
According to BitGo, The regulations came into effect as of May 1st of this year and represents a significant change in the way the FSA will oversee cryptocurrency-related business activities of operators in Japan going forward.
“In its vigilance to comply with the new regulations and to strengthen the protections for investors, known as Japan’s Payment Services Act (PSA), Bitgate has turned to BitGo Inc. for its global experience and battle-tested software solution technology.”
BitGo also noted that through the Self-Managed Custody solution, Bitgate will be able to generate and store its own private keys in-house and in-country, and use BitGo software products to secure customer assets, meeting the rigorous new FSA requirements. Mike Belshe, CEO of BitGo, spoke about the collaboration by stating:
“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.”
BitGo then added that with the Self-Managed Custody, clients not only store private keys in their local country but generate them in their own secure environment independent of BitGo and fully auditable by regulators.