BitGo to acquire fully regulated trust company with over $12B in assets
BitGo, a leader in digital currency security solutions for institutional investors, announced that it has entered into a definitive agreement to acquire Kingdom Trust Company, a South Dakota – fully regulated trust company with over $12 billion in assets. The transaction is still subject to customary closing conditions and regulatory approvals.
“Global financial markets have longed for an end-to-end solution offering both the technology to secure digital currencies as well as the legal and compliance controls necessary to integrate into mainstream financial portfolios”
Kingdom Trust meets all applicable requirements of Internal Revenue Code 408 to serve as a qualified custodian as defined in the Investment Advisers Act of 1940. The custodial services offered by the trust company, alongside BitGo’s digital currency security protection software, will make the combined companies the only full-stack, at scale provider of onsite and online protection for digital currency investments held by institutional investors.
“BitGo and Kingdom are building products for the future – marrying the new technology with the safety and controls all investors require.”
Kazakhstan trials paying traffic fines with Bitcoin
Kazakhstan is making it possible to pay traffic fines with cryptocurrency. The mobile application and service OKauto.kz has already been successfully tested by one of the creators of the application – Ali Shaykhislam. However, the authors of the service emphasize that the new function is still running in the test mode.
The creators of the realized the possibility of paying government fines for violation of traffic rules in the cryptocurrency of bitcoin.
This is a free app which provides a verification service and notifications of the fines issued, among other things.
It’s worth noting that there is no official status for cryptocurrencies in Kazakhstan, they are not considered money nor financial instruments.
Russian cryptocurrency bill proposed
The Russian Ministry of Finance published a bill “On Digital Financial Assets”, which is designed to legitimize cryptocurrencies in Russia.
The Ministry of Finance refers to digital financial assets as “property in electronic form, created using encryption (cryptographic) means.”
You can exchange tokens for another cryptocurrency or rubles only through special exchanges – “exchange operators of digital financial assets”.
Only a legal entity registered in Russia, and observing the laws No. 39-FZ “On the securities market” or No. 325-FZ “On organized trades” can become such operator.
The procedure for opening and maintaining accounts should be established by the Central Bank.
The regulator wants to buy only the tokens that the companies use to raise funds for rubles, warns the Ministry of Finance.
The ministry believes that it is impossible to prohibit the usual purchase of cryptocurrency, because otherwise illegal business will “move” to this market.
Also in the document there are definitions of smart contracts and mining, which is considered entrepreneurial activity for the creation or validation of cryptocurrency in exchange for compensation. What taxes will be levied on the activities of the miners, is not specified.
If the document passes three readings in the State Duma, and also receives the approval of the Federation Council and the signature of the Russian president, it will be enforced 90 days after its official publication. The bill may be amended during discussions in the parliament.
Blockchain News 26 January 2018
Author: Sara Bauer