Major cryptocurrency custody firm BitGo is reportedly expanding its regulatory compliance in Germany, more than three years after setting up a dedicated local subsidiary.
BitGo has received a cryptocurrency license from the German Federal Financial Supervisory Authority (BaFin), according to Finance Magnates report released on November 1. The report states that the company has been storing crypto assets such as Bitcoin (BTC) for its clients under the supervision of BaFin since 2019 as part of the transition regime.
Dejan Maljevic, Managing Director of BitGo Europe, said that the German license ensures BitGo’s position in the European market and is an important milestone for BitGo.
“BaFin is considered one of the major trendsetters in global crypto regulation,” Maljevic noted, adding that the license “drives the advancements needed for digital currencies while creating a secure regulatory framework.”
BitGo and BaFin have not yet responded to Cointelegraph’s request for comment.
Headquartered in Palo Alto, California, BitGo initially established two regulated custody entities in Germany and Switzerland in February 2020. BitGo’s German subsidiary, BitGo Deutschland, began offering custody services in Germany immediately and is expected to apply for regulatory approval in November 2020.
BitGo subsequently obtained a New York fiduciary license in March 2021, allowing the company to operate as an independent custodian in the state.
The news comes shortly after BitGo raised $100 million in Series C funding in August 2023, valuing the company at $1.75 billion. BitGo, backed by major investment firms including Goldman Sachs and Galaxy, has reportedly held discussions on at least two potential transactions using the new funds.
related: German blockchain financing increases 3% during market downturn: report
BitGo’s regulatory milestone in Germany is another sign of growing cryptocurrency adoption in the country. According to Chainaanalysis’s October 2023 report, Germany is the second largest cryptocurrency economy in Central, Northern and Western Europe after the United Kingdom.
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