BitGo has emerged as one of the initial U.S. companies to obtain approval under the EU’s consolidated crypto regulations. This license allows for institutional crypto custody services throughout Europe, eliminating the need for country-specific licenses. This development occurs as Europe finalizes its comprehensive digital asset regulations.
BitGo has received regulatory approval from Germany’s Federal Financial Supervisory Authority, BaFin, facilitating the U.S. crypto custody provider’s expansion across the member countries of the European Union.
This license establishes BitGo as one of the pioneering American digital asset firms recognized under the EU’s Markets in Crypto-Assets (MiCA) framework, enabling the rollout of crypto custody services for institutional clients across the region this year.
BitGo has acquired a MiCA license from BaFin, representing a key achievement in our expansion throughout Europe.
This approval broadens our digital asset offerings across the EU—supporting both cryptocurrency-native enterprises and traditional financial institutions, such as banks and asset managers, in their endeavors… pic.twitter.com/wuyf6P01kg
Garnering this approval signifies our “commitment to the highest standards of security, transparency, and trust,” stated Harald Patt, managing director of the company’s European division, in a statement released on Monday.
BitGo laid the foundation for its European headquarters in Frankfurt in 2023, as part of a larger initiative to grow within the Eurozone.
Since the launch of its BitGo Europe subsidiary, the company has secured registrations in nations such as Italy, Spain, Poland, and Greece. Its approval from BaFin allows it to operate across all 27 EU member states under one regulatory framework.
The firm joins other crypto enterprises seeking EU authorization, including Circle and Crypto.com.
What is the MiCA framework?
The Markets in Crypto-Assets regulation is the first comprehensive legal framework for crypto assets in the European Union.
Enacted by the European Parliament in April 2023, MiCA aims to standardize regulations across EU member states, addressing stablecoins, exchanges, and custodial services. It mandates that crypto firms register with national regulators and fulfill consumer protection, transparency, and capital requirements.
Stablecoin issuers, in particular, will undergo stringent oversight, including reserve requirements. MiCA also aims to combat market abuse and insider trading in crypto markets.
BitGo’s regulatory success in Europe stands in contrast to its experience in the United States, where the firm encountered challenges in 2020 regarding its ambitions to become a qualified custody solution in New York, facing hurdles with the Securities and Exchange Commission, then led by Gary Gensler.
Eventually, it achieved approval and reached a valuation of $1.75 billion by 2023.
In March of this year, the U.S. Treasury held discussions with BitGo and other Bitcoin custodians during a session titled “Safeguarding America’s Bitcoin.”
Earlier in April, BitGo was listed as a participant in the SEC’s roundtable focusing on crypto custody.
Decrypt reached out to BitGo for insights on the regulatory differences between the U.S. and the E.U.
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