Former Coinbase compliance chief Jeff Horowitz joins BitGo

Crypto firm BitGo has hired former Coinbase compliance chief Jeff Horowitz as it seeks a trust charter from New York state regulators.

Horowitz joined BitGo earlier this month and replaces Matt Parrella, who left the firm in November, according to his LinkedIn. Horowitz will head BitGo's compliance and risk programs.

Last August, BitGo applied for a trust charter from the New York State Department of Financial Services, and Horowitz will help the company win that charter, he told the Wall Street Journal.

BitGo currently offers custodial services through a South Dakota trust charter. The company is exploring potential licenses in other jurisdictions, both in the U.S. and abroad, said Horowitz.

BitGo last month settled a case with the U.S. Treasury Department for apparent violations of sanctions programs. The Treasury's Office of Foreign Assets Control said BitGo failed to prevent users located in sanctioned countries from using its wallet services, despite tracking their IP addresses. The firm agreed to pay $98,830 to settle the potential civil liability.

"As we move into the new year, we will see greater regulatory clarity for digital assets both here and abroad," said Mike Belshe, CEO of BitGo. "Jeff's knowledge of both traditional financial services and crypto markets will be critically important as we navigate state, federal, and international policies and regulations."