Cryptocurrency custody firm BitGo has taken a significant step in expanding its presence in Germany by securing a cryptocurrency license from the German Federal Financial Supervisory Authority (BaFin). This report released by Finance Magnates on November 1, 2023, marks a significant milestone for BitGo as it solidifies its regulatory compliance and foothold in the European market.
BitGo secures German Cryptocurrency license
BitGo, headquartered in Palo Alto, California, has been operating in Germany since 2019 under the watchful eye of BaFin, storing cryptocurrencies like Bitcoin for its clients as part of a transitional regime.
This newly obtained license not only ensures the company’s continued operation but also highlights the importance of attaching to a secure regulatory framework in the rapidly evolving cryptocurrency landscape.
Importance of regulatory compliance
Dejan Maljevic, the Managing Director of BitGo Europe, highlighted the significance of this achievement, noting that “BaFin is recognized as one of the world’s key trendsetters in crypto regulation.” He also highlighted that the license enables BitGo to contribute to the progress of digital currencies while maintaining a secure regulatory environment.
BitGo’s journey in Germany began more than three years ago when it established two regulated custodial entities in Germany and Switzerland in February 2020.
BitGo Deutschland, the German subsidiary, started custody services and had been planning to seek regulatory approval in November 2020. In March 2021, the company achieved another important milestone by securing a New York Trust license, allowing it to function as an independent custodian in the state of New York.
This achievement comes on the heels of BitGo’s successful $100 million Series C financing round in August 2023, raising the company’s valuation to an impressive $1.75 billion. Supported by major investment firms such as Goldman Sachs and Galaxy, BitGo is reportedly in discussions regarding at least two potential deals following this funding injection.
Also Read: Deutsche Bank Seeks to Expand Services with Digital Asset Custody License Application
Germany’s growing importance in Cryptocurrency
BitGo’s regulatory success in Germany is indicative of the increasing adoption of cryptocurrencies in the country.
A report by Chainalysis in October 2023 revealed that Germany ranks as the second-largest cryptocurrency economy in the Central, Northern, and Western Europe region, with the United Kingdom leading the pack. This underlines the growing significance of Germany in the world of digital assets and the importance of securing the necessary regulatory approvals to operate in the market.