Crypto Mania Exchanges Regulation Rumbles

BitGo Receives Crypto Custody License from BaFin in Germany

  • The announcement follows BitGo’s Series C fundraising round in August 2023.
  • The business received $100 million at an estimated valuation of $1.75 billion.

The German Federal Financial Supervisory Authority (BaFin) has issued a cryptocurrency custody license to BitGo, a company based in the United States.

Headquartered in Palo Alto, California, BitGo initially established two regulated custodial organizations in Germany and Switzerland in February 2020. Also, BitGo Deutschland, a German affiliate, began offering custody services in Germany immediately and was expected to file for regulatory authorization in November 2020.

According to a news release, BitGo, which was granted a New York trust charter by the New York Department of Financial Services (NYDFS) in 2021, has been keeping cryptocurrency assets for its clients since 2019 as part of a transitional program, also overseen by BaFin.

Trendsetters in Crypto Regulation

Moreover, Germany has passed legislation that encourages banks and custody experts to manage digital assets and provide associated services, making it one of the top nations in Europe in this space.

Dejan Maljevic, the managing director of BitGo Europe stated:

“BaFin is recognized as one of the world’s key trendsetters in crypto regulation. It enables the progress that digital currencies entail while creating a secure regulatory framework. We have worked hard to obtain this license. Now we are pleased to have reached this milestone.”

The announcement follows BitGo’s Series C fundraising round in August 2023, in which the business received $100 million at an estimated valuation of $1.75 billion. With the backing of large investment companies like Goldman Sachs and Galaxy and the latest funding, BitGo has apparently begun negotiations for at least two potential deals.

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