Home Crypto Events BitGo Expands Regulatory Presence in Germany, Secures Cryptocurrency License

BitGo Expands Regulatory Presence in Germany, Secures Cryptocurrency License

BitGo

In a noteworthy development, BitGo, a prominent cryptocurrency custody firm, has expanded its regulatory compliance operations in Germany, a strategic move that comes more than three years after the launch of its dedicated local subsidiary. The firm has successfully obtained a cryptocurrency license from the German Federal Financial Supervisory Authority (BaFin), a significant milestone in the world of digital finance.

Since 2019, BitGo has been diligently storing various cryptocurrencies, including the iconic Bitcoin, for its clients, all under the watchful eye of BaFin, as part of a transitional regulatory regime. This latest achievement further solidifies BitGo’s position in the European market and marks a pivotal moment in the company’s journey.

Dejan Maljevic, the Managing Director of BitGo Europe, expressed his enthusiasm about this development, emphasizing the importance of BaFin’s role in shaping global cryptocurrency regulations. According to Maljevic, this newly acquired license not only paves the way for the progress of digital currencies but also establishes a secure regulatory framework, fostering trust and confidence in the cryptocurrency landscape.

It’s worth noting that BitGo, headquartered in Palo Alto, California, had already set up two regulated custodial entities in Germany and Switzerland in February 2020. BitGo’s German subsidiary, BitGo Deutschland GmbH, immediately commenced providing custody services in Germany, with plans to seek regulatory approval in November 2020.

In another significant stride, BitGo secured a New York Trust license in March 2021, granting the company the status of an independent custodian within the state. These series of accomplishments have propelled BitGo to the forefront of the cryptocurrency custody landscape.

BitGo’s recent expansion in Germany is closely tied to its successful Series C financing round in August 2023, where the company managed to secure a staggering $100 million in funding, significantly boosting its valuation to a formidable $1.75 billion. With backing from major investment firms like Goldman Sachs and Galaxy, BitGo is now actively exploring potential deals that will leverage this newfound financial strength.

This regulatory achievement in Germany reflects a broader trend of growing cryptocurrency adoption within the country. According to a report by Chainalysis in October 2023, Germany has positioned itself as the second-largest cryptocurrency economy in the Central, Northern, and Western Europe region, following closely behind the United Kingdom.

The cryptocurrency industry’s evolution is marked by BitGo’s successful acquisition of the BaFin license, positioning the company as a key player in Germany’s digital finance sector. This development also aligns with the company’s longstanding commitment to adhering to rigorous regulatory standards, ensuring the safety and security of digital assets.

BitGo’s expansion in Germany not only showcases the company’s commitment to regulatory compliance but also highlights the growing acceptance and adoption of cryptocurrencies within the European market. As digital currencies continue to gain traction, regulatory oversight and approval become increasingly vital for the growth and stability of this innovative financial ecosystem.

In conclusion, BitGo’s latest achievement is not merely a reflection of its commitment to regulatory compliance; it’s a testament to the transformative power of cryptocurrencies and their growing influence in the world of finance. With a strong foothold in the European market, BitGo is poised to play a pivotal role in shaping the future of digital finance.

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Evie

Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

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