Digital assets custody firm BitGo has obtained a cryptocurrency custody license from the German Federal Financial Supervisory Authority (BaFin).
According to a recent press release, the cryptocurrency firm has been granted a full license in Germany following years of operations in the country as part of a transitional regime.
The United States-based firm has often explained its expansion plans with proper regulatory compliance hinting at key markets. The firm set up two custodial entities in Germany and Switzerland in 2020 with its German arm, BitGo Deutschland GmbH offering services and kickstarting license applications.
The firm also secured approval from the New York Department of Financial Services (NYDSF) for the New York Trust Charter with plans to offer custody services to a large pool of institutional clients in the state.
“We’re finding that the largest traditional financial institutions are all doing a considerable amount of work to determine what their level of participation will be in the digital asset space. For BitGo that can mean collaborative relationships in which we act as a sub-custodian or we work in partnership or we develop white label solutions.”
Germany key to BitGo’s global plans
This approval comes after over three years of operations with a local subsidiary and observers say it’s a step in the right direction for a wider European presence.
Dejan Maljevic, BitGo’s Managing European Director expressed satisfaction with the progress made so far hailing the local regulator’s efforts in the growth of the crypto sector.
“BaFin is recognized as one of the world’s key trendsetters in crypto regulation. It enables the progress that digital currencies entail while creating a secure regulatory framework.”
Germany has been a leader in crypto adoption across Europe with growing industry numbers in terms of institutional and retail services. A Chainalysis study places the country in second place in industry economy behind the United Kingdom in Northern, Eastern, and Western Europe.
On a broader scale, Europe has been attracting multiple crypto investments hinged on its Markets in Crypto Assets (MiCA) regulation which creates a uniform regulatory environment in the continent.
🚨 The European Union’s landmark Markets in Crypto Assets (MiCA) law was published in the Official Journal of the European Union (OJEU) on Friday, signaling that the bill has been formally passed and starting the countdown until new rules take effect.
— Cryptonews.com (@cryptonews) June 9, 2023
Several crypto firms are now looking to get full licenses in a country before the law takes effect to use it as an entrance to the whole continent as a license in a member state is enough.
Success hinged on regulation and compliance
In August, BitGo raised $100 million in its Series C funding raising its valuation to $1.75 billion. The firm has attracted big institutional players like Goldman Sachs and Galaxy Digital and still pushes new frontiers.
Mike Belshe, BitGo’s CEO attributed the company’s success to its licensing and regulatory strategies amid market collapses and scrutiny.
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