BitGo, a leading cryptocurrency custody firm based in Palo Alto, California, has successfully obtained a cryptocurrency license from the German Federal Financial Supervisory Authority (BaFin). This development marks a pivotal moment for BitGo’s expansion in Germany, emphasizing its commitment to regulatory compliance.
Steady Growth Since 2019
BitGo has been actively involved in storing crypto assets, including Bitcoin, for its clients since 2019. It operates under the supervision of BaFin as part of a transitional regime. Notably, the firm has steadily grown its presence in the German market.
Dejan Maljevic, BitGo Europe managing director, highlighted the significance of the BaFin license. He stated,
“BaFin is recognized as one of the world’s key trendsetters in crypto regulation.”
Furthermore, he emphasized that the license not only enables the progression of digital currencies but also establishes a secure regulatory framework.
Expanding Regulatory Footprint, Global Recognition and Funding
Originally setting up two regulated custodial entities in Germany and Switzerland in February 2020, BitGo’s German subsidiary, BitGo Deutschland, has been providing custody services in the region. The move to secure regulatory approval aligns with the company’s commitment to operating within established frameworks.
BitGo’s regulatory achievement comes on the heels of its successful Series C financing round in August 2023. Then, the company raised $100 million, further reaching a valuation of $1.75 billion. With support from major investment firms like Goldman Sachs and Galaxy, BitGo has initiated discussions on prospective deals, leveraging its strengthened financial position.
Market Dynamics and Cryptocurrency Adoption in Germany
This regulatory milestone also reflects the broader trend of growing cryptocurrency adoption in Germany. According to a Chainalysis report from October 2023, Germany stands as the second-largest cryptocurrency economy in the Central, Northern, and Western Europe region, following the United Kingdom.