BitGo, a major cryptocurrency custody firm, is expanding its regulatory compliance in Germany, marking an important milestone for the company and securing its presence in the European market. According to a report by Finance Magnates, BitGo has obtained a cryptocurrency license from the German Federal Financial Supervisory Authority (BaFin).
BitGo has been storing crypto assets, including Bitcoin (BTC), for its clients since 2019 under the supervision of BaFin as part of a transitional regime. However, the new license solidifies its position in Germany and allows for the progression of digital currencies within a secure regulatory framework.
Dejan Maljevic, the managing director of BitGo Europe, highlighted the significance of obtaining the BaFin license. He noted that BaFin is recognized as a prominent influencer in crypto regulation and commended the license for enabling the advancement of digital currencies.
BitGo initially established two regulated custodial entities in Germany and Switzerland in February 2020. Its German subsidiary, BitGo Deutschland GmbH, began offering custody services in Germany and had plans to apply for regulatory approval in November 2020.
In addition to Germany, BitGo also received a New York Trust license in March 2021, allowing the firm to operate as an independent custodian in the state. The recent acquisition of the BaFin license further expands BitGo’s regulatory compliance and solidifies its position as a trusted custodian in Germany.
This news comes shortly after BitGo raised $100 million in a Series C financing round in August 2023, bringing its valuation to $1.75 billion. The funding round was backed by major investment firms including Goldman Sachs and Galaxy. With the new funding, BitGo has reportedly initiated discussions regarding at least two prospective deals.
BitGo’s regulatory milestone in Germany reflects the increasing adoption of cryptocurrencies in the country. According to a Chainalysis report from October 2023, Germany is the second-largest cryptocurrency economy in the Central, Northern, and Western Europe region, following the United Kingdom.
The expansion of BitGo’s regulatory compliance in Germany signifies the company’s commitment to providing secure custody services and adhering to regulatory standards. With its strong presence in Europe, BitGo is well-positioned to cater to the growing demand for cryptocurrency custodial services in the region.