- BitGo, a prominent U.S.-regulated cryptocurrency custody firm, has secured a crypto custody license from the German Federal Financial Supervisory Authority (BaFin).
- Having previously operated under BaFin’s supervision since 2019 as part of a transitional regime, this official licensure marks a significant step forward for BitGo and the broader crypto custody landscape.
In a major development for the cryptocurrency industry, BitGo has achieved a significant regulatory milestone by being granted a crypto custody license from the German Federal Financial Supervisory Authority (BaFin). This momentous achievement underscores BitGo’s unwavering commitment to ensuring the secure and compliant management of digital assets, a priority that has been at the forefront of its operations since its inception.
BitGo, a U.S.-regulated firm renowned for its cryptocurrency custody services, has been actively involved in the crypto asset storage domain since 2019. During this period, the firm operated under the vigilant eye of BaFin, adhering to the stringent requirements and standards set forth by the regulatory body as part of a transitional regime. This prior engagement with BaFin’s supervisory mechanisms has undoubtedly played a crucial role in paving the way for BitGo’s successful acquisition of the official crypto custody license.
Germany: A European Leader in Crypto Custody Regulation
Germany has distinctly positioned itself as a frontrunner in Europe, championing the integration and regulation of digital assets within the financial ecosystem. The nation has been proactive in legislating frameworks that empower banks and specialized custody providers to manage crypto assets and offer ancillary services, thereby fostering an environment conducive to innovation and security in the digital asset space.
Dejan Maljevic, the Managing Director of BitGo Europe, expressed his contentment and acknowledged the significance of this development. He remarked,
“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.”
Maljevic emphasized the rigorous efforts invested by the BitGo team to meet BaFin’s exacting standards and expressed his pleasure in reaching this pivotal milestone.
In 2021, BitGo’s commitment to regulatory compliance and its drive to expand its footprint in the crypto custody domain were further validated when it received approval from the New York Department of Financial Services (NYDFS) for a New York trust charter. This approval, alongside the recent licensure from BaFin, solidifies BitGo’s position as a trustworthy and reliable entity in the global cryptocurrency custody arena, championing the secure and compliant storage of digital assets.