Major cryptocurrency custodian BitGo is reportedly expanding its regulatory compliance in Germany more than three years after launching a dedicated local subsidiary.
BitGo has received a cryptocurrency license from the German Federal Financial Supervisory Authority (BaFin), according to a November 1 report by Finance Magnates. The report indicates that the company has been storing crypto assets such as Bitcoin (BTC) for its clients since 2019 under the supervision of the Federal Financial Supervision Authority (BaFin) as part of a transitional regime.
Dejan Malevic, Managing Director of BitGo Europe, said that the German license ensures BitGo’s presence in the European market and is an important milestone for BitGo.
“BaFin is recognized as one of the world’s major leaders in regulating cryptocurrencies,” Malevich 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.
BitGo, which is headquartered in Palo Alto, California, originally established two regulated custodial entities in Germany and Switzerland in February 2020. BitGo’s German subsidiary BitGo Deutschland immediately began offering custodial services in Germany and was expected to apply for Regulatory approval in November 2020.
BitGo subsequently obtained a New York trust license in March 2021, which allowed the company to operate as an independent custodian in the state.
This news comes shortly after BitGo raised $100 million in a Series C funding round in August 2023, raising the company’s valuation to $1.75 billion. Backed by major investment firms such as Goldman Sachs and Galaxy, BitGo has reportedly begun discussions on at least two potential deals using the new funding.
Related: Blockchain financing in Germany rises 3% amid market decline: report
BitGo’s regulatory milestone in Germany is another sign of growing cryptocurrency adoption in the country. According to a Chainalysis report from October 2023, Germany is the second largest cryptocurrency-based economy in the Central, Northern and Western Europe region after the United Kingdom.