BitGo, a major cryptocurrency custody firm, is reportedly expanding its regulatory compliance in Germany, marking a significant development over three years since the establishment of its dedicated local subsidiary. According to Finance Magnates' report on November 1, BitGo has obtained a cryptocurrency license from Germany's Federal Financial Supervisory Authority (BaFin). Since 2019, the firm has been offering services to clients under BaFin's oversight as part of the transition regime.
Dejan Maljevic, the Managing Director of BitGo Europe, expressed that the German license solidifies BitGo's position in the European market and represents an important milestone. Maljevic emphasized the significant role BaFin plays as a global leader in crypto regulation, highlighting that this license advances the cryptocurrency sector while establishing a secure regulatory framework.
BitGo, headquartered in Palo Alto, California, initially established two regulated custody entities in Germany and Switzerland in February 2020. BitGo Deutschland, the company's German subsidiary, commenced providing custody services in Germany immediately and is anticipated to seek regulatory approval in November 2020. BitGo also obtained a New York fiduciary license in March 2021, granting it the status of an independent custodian in the state.
This development follows BitGo's successful Series C funding round in August 2023, which raised $100 million and valued the company at $1.75 billion. With support from major investment firms like Goldman Sachs and Galaxy, BitGo has been exploring potential deals, taking advantage of the recent funding. This regulatory milestone in Germany mirrors the growing acceptance of cryptocurrencies in the country. According to an October 2023 report by Chainalysis, Germany ranks as the second-largest cryptocurrency economy in Central, Northern, and Western Europe, trailing only the United Kingdom.
