BitGo,
a U.S.-regulated cryptocurrency custody firm, obtained a cryptocurrency custody
license from the German Federal Financial Supervisory Authority (BaFin). This
development secures BitGo’s presence in the European market.
Germany
has been active in Europe regarding the regulation and oversight of
cryptocurrency and digital asset custody. The country has implemented laws and
regulations that encourage both banks and specialized custody providers to
engage in handling of digital assets while offering associated services.
“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,” said Dejan Maljevic, the managing director of BitGo Europe, in a
statement. “We have worked hard to obtain this license. Now we are pleased to
have reached this milestone.”
BitGo
had an approval from the New York Department of Financial Services for a
New York trust charter in 2021. The firm has been storing cryptocurrency assets
for its clients since 2019, even under the supervision of BaFin, as part of a
transitional regime.
BitGo’s $100 Million Funding
Round in August
Back
in August, in a Finance Magnates
report, it was stated that BitGo
had raised $100 million in a recent funding round, elevating its valuation
to $1.75 billion. This comes at a time when the cryptocurrency sector faces
uncertainty, ongoing regulatory debates, and heightened market volatility.
BitGo’s
CEO, Mike Belshe, acknowledged the testing conditions in the cryptocurrency
landscape but credited the company’s success to its commitment to licensing and
regulatory compliance. This dedication has allowed BitGo to navigate the
complex legal environment surrounding digital assets with resilience and
confidence.
The
funding round was backed by new investors. While the specific identities of
these investors were not disclosed, Belshe revealed that they encompassed
individuals and institutions from both the United States and Asia. Notably,
some of these investors had limited or no prior involvement in the crypto
space.
BitGo’s
latest funding opens the door to potential acquisitions. Belshe disclosed that
the company had already initiated discussions regarding at least two
prospective deals. This strategic move follows BitGo’s recent decision to
abandon its plans to acquire Prime Trust, a rival crypto custodian that filed
for bankruptcy earlier this week.
The
current valuation…
