BitGo Secures Digital Asset Custody License in Germany
Digital assets custody firm BitGo has obtained a cryptocurrency custody license from the German Federal Financial Supervisory Authority (BaFin).
According to a recent press release, the cryptocurrency firm has been granted a full license in Germany following years of operations in the country as part of a transitional regime.
The United States-based firm has often explained its expansion plans with proper regulatory compliance hinting at key markets. The firm set up two custodial entities in Germany and Switzerland in 2020 with its German arm, BitGo Deutschland GmbH offering services and kickstarting license applications.
The firm also secured approval from the New York Department of Financial Services (NYDSF) for the New York Trust Charter with plans to offer custody services to a large pool of institutional clients in the state.
“We’re finding that the largest traditional financial institutions are all doing a considerable amount of work to determine what their level of participation will be in the digital asset space. For BitGo that can mean collaborative relationships in which we act as a sub-custodian or we work in partnership or we develop white label solutions.”
This approval comes after over three years of operations with a local subsidiary and observers say it’s a step in the right direction for a wider European presence.
Dejan Maljevic, BitGo’s Managing European Director expressed satisfaction with the progress made so far hailing the local regulator’s efforts in the growth of the crypto sector.
“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.”
Germany has been a leader in crypto
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