BitGo originally announced it was setting up two regulated custodial entities in Germany and Switzerland in February 2020.
Major cryptocurrency custody firm BitGo is reportedly expanding its regulatory compliance in Germany more than three years after launching a dedicated local subsidiary.
BitGo has obtained a cryptocurrency license from the German Federal Financial Supervisory Authority (BaFin), according to a Nov. 1 report by Finance Magnates. The firm has been storing crypto assets like Bitcoin (BTC) for its clients since 2019 under the supervision of BaFin as part of a transitional regime, the report notes.
The German license secures BitGo’s presence in the European market and is an important milestone for BitGo, BitGo Europe managing director Dejan Maljevic said.
“BaFin is recognized as one of the world’s key trendsetters in crypto regulation,” Maljevic noted, adding that the license “enables the progress that digital currencies entail 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 originally set up two regulated custodial entities in Germany and Switzerland in February 2020. BitGo’s German subsidiary, BitGo Deutschland, immediately started providing custody services in Germany and was expected to apply for regulatory approval in November 2020.
BitGo then secured a New York Trust license in March 2021, which allowed the firm to operate as an independent custodian in the state.
The news comes shortly after BitGo raised $100 million in a Series C financing round in August 2023, bringing the company’s valuation to $1.75 billion. Backed by major investment firms like Goldman Sachs and Galaxy, BitGo reportedly initiated discussions regarding at least two prospective deals using the new funding.
BitGo’s regulatory milestone in Germany is another sign of growing cryptocurrency adoption in the country. According to an October 2023 report by Chainalysis, Germany is the second largest cryptocurrency economy in the Central, Northern and Western Europe region after the United Kingdom.