As Brazil moves towards stricter crypto regulations, Bitgo plays timely and becomes the country’s go-to custodian of its own facility.
By launching a fully regulated subsidiary in Sao Paulo ahead of potential laws requiring key national control, the company has established itself as the default solution for banks and asset managers navigating Brazil’s rapidly evolving digital asset environment.
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- Bitgo has launched a subsidiary in Sao Paulo to serve banks and asset managers amid Brazil’s evolving crypto regulations
- The move is consistent with proposed laws that could require key domestic custody of digital assets.
On July 25th, Crypto Custody Giant Bitgo announced the official release of Bitgo Brasil Tecnologia Ltda.
According to BITGO, the move is already built into the infrastructure as it discusses more stringent rules on virtual asset service providers in Brazil, including potential requirements for key national management.
Now, by establishing a physical presence, the company positions itself as the default institutional manager before competitors react.
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Bitgo’s Brazilian Pivot: Why now?
BITGO’s Brazilian expansion can be interpreted as a calculated response to three convergence factors: regulatory momentum, institutional demand, and Brazil’s unique position in the Latin American crypto economy. The country’s parliament is now refined a movement that reflects the European MICA framework, which could require financial institutions to preserve digital assets with local resident custodians.
The new BITGO, which secures MICA licenses in Germany, is replicating its playbook by establishing a physical infrastructure before the rules.
“We want the banks to see us as an ally,” said Luis Ayala, director of Bitgo. “We are ready to meet any demands that arise with respect for security, technology and local law. Even if the law goes a different path, we will remain here as partners of Brazilian institutions.”
For Brazilian financial giants, Bitgo’s arrival solves an imminent dilemma. Major banks such as Itaú and Bradesco have carefully researched crypto services, but have no custody partners that combine institutional-grade security with terrestrial compliance.
Bitgo Brasil offers insured cold storage, an OTC trading desk and automated financial tools. All of these operate within Brazilian jurisdiction. Importantly, the subsidiaries provide auditable APIs tailored to local accounting standards, a deeply important feature for auditors of companies such as PWC and KPMG Brazil.
Timing also reflects Brazil’s maturation beyond retail cryptography speculation. With central banks piloting asset managers like DREX digital currency and XP Inc., they launch Bitcoin ETFs and institutions need infrastructure that bridges traditional finance and blockchain.
Bitgo’s European track record, including partnership custody assets for businesses such as Coinlist and Swan Bitcoin, gives it credibility, but its localization strategy highlights it.
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