BitGo Enhances European Presence with German Cryptocurrency Custody License
U.S.-based cryptocurrency custody giant BitGo has solidified its standing in the European market with a newly acquired cryptocurrency custody license from BaFin, Germany's Federal Financial Supervisory Authority, marking a pivotal moment in its expansion and adherence to regulatory standards.
U.S.-regulated cryptocurrency custody giant BitGo has marked a significant milestone in its European expansion, obtaining a cryptocurrency custody license from the German Federal Financial Supervisory Authority (BaFin). This strategic move not only reinforces BitGo’s position in the European market but also showcases the company’s commitment to maintaining the highest standards of regulatory compliance.
Germany has positioned itself as a leader in Europe for cryptocurrency regulation, fostering a balanced environment that encourages banks and specialized custody providers to actively participate in digital asset management. The German authorities have established robust policies that promote the advancement of digital currencies while ensuring a secure and regulated framework.
“BaFin is recognized as one of the world’s key trendsetters in crypto regulation,” noted Dejan Maljevic, the managing director of BitGo Europe. He underscored the significance of this achievement, emphasizing the rigorous efforts and dedication that led to obtaining the license.
BitGo’s journey to this point has been marked by strategic regulatory achievements. In 2021, the company received approval for a New York trust charter, further solidifying its reputation in the industry. Since 2019, BitGo has been securely storing cryptocurrency assets for its clients, operating under BaFin’s transitional regime.
In August 2023, BitGo raised $100 million in a funding round, boosting its valuation to $1.75 billion. This financial accomplishment is particularly noteworthy given the prevailing uncertainties and market volatility in the cryptocurrency sector. CEO Mike Belshe attributed the company’s success to its steadfast commitment to licensing and regulatory compliance, which has enabled BitGo to navigate the complex legal landscape surrounding digital assets confidently.
The recent funding opens up new avenues for strategic acquisitions, with Belshe revealing ongoing discussions for potential deals. This follows BitGo’s recent decision to reevaluate its acquisition plans, showcasing the company’s strategic adaptability.
BitGo’s current valuation of $1.75 billion marks a significant increase from its 2021 valuation of $1.2 billion. The company has demonstrated resilience and strategic acumen, even amidst legal challenges and a tumultuous market.
With Germany’s cryptocurrency landscape continuously evolving, BitGo’s procurement of the BaFin license sets a precedent for regulatory adherence and strategic growth in the cryptocurrency world. The company’s expansion and unwavering dedication to regulatory compliance solidify its position as a leader in secure asset management, showcasing resilience and innovation in an industry filled with uncertainties.
