Major cryptocurrency custody firm BitGo is reportedly increasing its regulatory compliance in Germany greater than three years after launching a devoted native 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 belongings like Bitcoin (BTC) for its shoppers since 2019 underneath the supervision of BaFin as a part of a transitional regime, the report notes.
The German license secures BitGo’s presence in the European market and is a vital milestone for BitGo, BitGo Europe managing director Dejan Maljevic stated.
“BaFin is recognized as one of the world’s key trendsetters in crypto regulation,” Maljevic famous, including that the license “enables the progress that digital currencies entail while creating a secure regulatory framework.”
BitGo and BaFin haven’t but responded to Cointelegraph’s request for remark.
Headquartered in Palo Alto, California, BitGo initially arrange two regulated custodial entities in Germany and Switzerland in February 2020. BitGo’s German subsidiary, BitGo Deutschland, instantly began offering custody companies in Germany and was anticipated to use for regulatory approval in November 2020.
BitGo then secured a New York Trust license in March 2021, which allowed the firm to function as an unbiased custodian in the state.
The information comes shortly after BitGo raised $100 million in a Series C financing spherical in August 2023, bringing the corporate’s valuation to $1.75 billion. Backed by main funding companies like Goldman Sachs and Galaxy, BitGo reportedly initiated discussions concerning no less than two potential offers utilizing the brand new funding.
BitGo’s regulatory milestone in Germany is one other signal of rising cryptocurrency adoption in the nation. According to an October 2023 report by Chainalysis, Germany is the second largest cryptocurrency economy in the Central, Northern and Western Europe area after the United Kingdom.