BitGo Strengthens European Presence with German Crypto License Amid Growing Adoption
Summary:
BitGo, a leading digital asset custody firm, has enhanced its regulatory compliance in Germany by acquiring a crypto license from the Federal Financial Supervisory Authority. This achievement solidifies BitGo's footprint in the European market, following its establishment of regulated custodial operations in Germany and Switzerland in 2020. The move follows BitGo's successful $100 million funding round in August 2023, and mirrors Germany's growing adoption of cryptocurrency.
BitGo, a prominent digital asset custody company, is boosting its regulatory compliance efforts in Germany, building on its local presence since forming a focused subsidiary there more than three years ago. As reported by Finance Magnates on Nov. 1, BitGo has now received a crypto license from Germany's top financial watchdog, the Federal Financial Supervisory Authority (BaFin). It's been known that BitGo has safeguarded digital assets such as Bitcoin for its customers under BaFin's oversight since 2019, as part of an interim scheme. BitGo Europe's managing director, Dejan Maljevic, has highlighted the acquisition of the German license is pivotal for BitGo, solidifying its footprint in the European market.
Observing BaFin as a global leading force in crypto regulations, Maljevic stressed the license provides a safe regulatory landscape while fostering the advancements offered by digital currencies. Neither BitGo nor BaFin have provided a response to Cointelegraph's inquiry for further details.
BitGo, whose main headquarters is in Palo Alto, California, originally established two regulated custodial operations in Germany and Switzerland in February 2020. BitGo's German offshoot, BitGo Deutschland GmbH, began offering custody services within the country swiftly afterwards, and was forecasted to seek regulatory authorization in November 2020.
In March 2021, BitGo then earned a New York Trust license, granting it the privilege to operate as a distinct custodian in the state.
This announcement follows shortly on the heels of BitGo's successful quest to generate $100 million from a Series C funding round in August 2023, elevating its total market worth to $1.75 billion. With heavyweight investors such as Goldman Sachs and Galaxy onboard, BitGo is purportedly in preliminary talks about at least two potential acquisitions, powered by its fresh capital.
The company's regulatory achievement in Germany is yet another indicator of the nation's steadily increasing cryptocurrency acceptance. According to an October 2023 analysis by Chainalysis, the UK is the only member of Central, Northern, and Western Europe where the digital currency economy eclipses that of Germany.
Published At
11/1/2023 12:31:07 PM
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