Crypto custody company BitGo has reportedly obtained a cryptocurrency custody license from the German Federal Financial Supervisory Authority (BaFin), Financial magnate reported on November 1.
The license represents an important milestone for BitGo in Europe and highlights the important role BaFin plays in establishing crypto regulation, said Dejan Maljevic, the general manager of BitGo Europe.
“BaFin is recognized as one of the world’s leading trendsetters in crypto regulation. It enables the advancements that digital currencies bring while creating a secure regulatory framework,” said Maljevic.
Before this licensing, BitGo helped its customers protect their cryptocurrency holdings under the supervision of BaFin through a transitional arrangement instituted in 2019.
Meanwhile, this development continues BitGo’s recent positive streak. In August, the company secured $100 million in a funding round, bringing its valuation to $1.75 billion. At the time, CEO Mike Belshe emphasized the importance of licensing and regulation, stating that “safety is just on everyone’s mind right now.”
BitGo obtained a license from the New York Trust in March 2021, allowing it to operate as an independent and regulated qualified custodian under the New York State Banking Law.
Germany’s role in the European crypto ecosystem
Germany is recognized as one of the friendliest crypto regulatory environments in Europe.
A recent study by Chainalysis has positioned the country as the second largest cryptocurrency economy in Europe. Furthermore, a 2022 CoinCub ranking claimed that Germany was the most crypto-friendly country in the world, citing regulatory clarity and strong legal frameworks.
For context, the country has introduced regulations that allow companies to issue crypto stocks. In addition, the country’s regulatory authorities have also formulated several measures intended to protect people under jurisdictions.
This has led to major traditional financial institutions such as Deutsche Bank AG applying for crypto-related licenses from the authorities.
However, crypto companies like Binance and WorldCoin have struggled in the region despite their pro-crypto tendencies.