BitGo, a leading digital assets custody firm, has announced that it has obtained a cryptocurrency custody license from the German Federal Financial Supervisory Authority (BaFin). This license marks a significant milestone for the firm, as it has been granted a full license in Germany after years of operations in the country under a transitional regime.
Expansion Plans with Regulatory Compliance
BitGo has consistently emphasized its commitment to proper regulatory compliance in its expansion plans. The firm has set up two custodial entities in Germany and Switzerland in 2020, with BitGo Deutschland GmbH, its German arm, offering services and kickstarting license applications. Furthermore, the firm has also secured approval from the New York Department of Financial Services (NYDSF) for the New York Trust Charter, enabling it to offer custody services to institutional clients in the state.
A Step Towards a Wider European Presence
This recent approval from BaFin reflects BitGo’s determination to establish a stronger foothold in Europe. With over three years of operations in the country, BitGo’s local subsidiary has paved the way for the firm’s growth. Dejan Maljevic, BitGo’s Managing European Director, expressed satisfaction with the progress made and acknowledged the efforts of the local regulator in fostering the development of the cryptocurrency sector.
Germany has emerged as a leader in crypto adoption across Europe, with a thriving industry offering institutional and retail services. A study conducted by Chainalysis ranks Germany as the second-largest economy in the crypto industry, following the United Kingdom in Northern, Eastern, and Western Europe. On a broader scale, Europe has become an attractive destination for crypto investments due to its Markets in Crypto Assets (MiCA) regulation, which aims to create a unified regulatory environment across the continent.
Many other crypto firms are also seeking full licenses in Germany as a strategic entry point into the European market, as a license in one member state is sufficient to operate in the entire continent. BitGo’s successful license acquisition aligns with this trend and positions the firm for further growth and expansion.
In August, BitGo successfully raised $100 million in its Series C funding, catapulting its valuation to $1.75 billion. The firm’s impressive growth has attracted major institutional players such as Goldman Sachs and Galaxy Digital, and is a testament to BitGo’s strong licensing and regulatory strategies.
“We are thrilled to have obtained the cryptocurrency custody license from BaFin. This achievement is a significant milestone for BitGo and reinforces our commitment to regulatory compliance and expansion in key markets.”
– Mike Belshe, CEO of BitGo
