BitGo Expands Regulatory Compliance in Germany with Cryptocurrency License
BitGo, a major cryptocurrency custody firm, has obtained a cryptocurrency license from the German Federal Financial Supervisory Authority (BaFin), according to a report by Finance Magnates. This move comes more than three years after BitGo launched its dedicated local subsidiary in Germany.
Since 2019, BitGo has been storing crypto assets such as Bitcoin (BTC) for its clients under the supervision of BaFin as part of a transitional regime. The acquisition of the German license solidifies BitGo’s presence in the European market and is seen as an important milestone for the company.
Recognition of BaFin’s Crypto Regulation
The managing director of BitGo Europe, Dejan Maljevic, highlighted the significance of obtaining the BaFin license. He stated that BaFin is recognized globally as a key trendsetter in crypto regulation. Maljevic believes that this license enables progress in the digital currency space while ensuring a secure regulatory framework.
Expansion and Previous Regulatory Approvals
Headquartered in Palo Alto, California, BitGo established regulated custodial entities in Germany and Switzerland in February 2020. Its German subsidiary, BitGo Deutschland GmbH, began offering custody services immediately and was expected to apply for regulatory approval in November 2020.
In March 2021, BitGo secured a New York Trust license, allowing it to operate as an independent custodian in the state.
Continued Growth and Funding
This news follows BitGo’s successful Series C financing round in August 2023, which raised $100 million and brought the company’s valuation to $1.75 billion. With backing from prominent investment firms like Goldman Sachs and Galaxy, BitGo is reportedly exploring potential deals using the new funding.
Germany’s Growing Crypto Adoption
BitGo’s regulatory milestone in Germany reflects the increasing adoption of cryptocurrencies in the country. According to a report by Chainalysis, Germany is the second largest cryptocurrency economy in Central, Northern, and Western Europe, following the United Kingdom.
Hot Take: BitGo Strengthens Position in Europe with BaFin License
BitGo’s acquisition of a cryptocurrency license from BaFin demonstrates its commitment to expanding its regulatory compliance and presence in Germany. This move not only solidifies BitGo’s position in the European market but also highlights Germany’s growing significance in the crypto industry. With its strong reputation for crypto regulation, BaFin’s recognition adds credibility to BitGo’s operations and provides a secure framework for digital currencies. As Germany continues to embrace cryptocurrencies, BitGo is well-positioned to capitalize on the country’s growing adoption and contribute to the further development of the crypto ecosystem.
By
By
By
By