BitGo, a leading cryptocurrency custodian, has officially obtained a crypto custody license from Germany's Federal Financial Supervisory Authority (BaFin). This milestone reinforces BitGo's presence in the European market and underscores Germany's progressive stance on digital asset regulation.
Key Developments
- Regulatory Approval: BitGo Deutschland, the company's German subsidiary, received BaFin's endorsement after operating under a provisional arrangement since 2019. The license formalizes BitGo's custody services for assets like Bitcoin (BTC) in Germany.
- Strategic Expansion: The license follows BitGo's establishment of regulated custodial entities in Germany and Switzerland in 2020, aligning with its long-term European growth strategy.
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BitGo's Regulatory Journey
European Foundations
- 2020: Launched BitGo Deutschland and BitGo Switzerland, initiating custody services under BaFin's temporary exemption.
- 2021: Secured a New York trust license, expanding its compliance footprint in key markets.
Recent Milestones
- August 2023: Raised $100M in Series C funding, boosting its valuation to $1.75B with backing from Goldman Sachs and Galaxy.
- November 2023: BaFin license solidifies Germany as a hub for regulated crypto services.
Why Germany Matters
Dejan Maljevic, CEO of BitGo Europe, emphasized:
"BaFin is a global trendsetter in crypto regulation. This license unlocks the potential of digital assets while ensuring a secure framework."
Germany ranks as the second-largest crypto economy in Central, Northern, and Western Europe, per Chainalysis (2023). The license reflects growing institutional adoption and regulatory clarity.
Market Implications
- Investor Confidence: BitGo's compliance enhances trust in crypto custodial services.
- Competitive Edge: Positions BitGo alongside traditional financial institutions in Europe.
FAQ
1. What services does BitGo’s BaFin license cover?
The license permits BitGo to legally custody cryptocurrencies like Bitcoin for German clients, adhering to strict regulatory standards.
2. How does this impact BitGo’s global operations?
The approval strengthens BitGo’s European market access and complements its New York trust license, showcasing multi-jurisdictional compliance.
3. Why is Germany a key market for crypto custody?
Germany’s robust regulatory framework and high crypto adoption make it a strategic hub for institutional crypto services.
BitGo’s achievement highlights the convergence of innovation and regulation, paving the way for broader crypto integration in Europe. For more details on compliant custody, visit our partner platform 👉 here.
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