BitGo’s Milestone Achievement
In a significant leap for the cryptocurrency landscape, BitGo, a leader in crypto custody solutions, has officially obtained a crypto custody business license from the German Federal Financial Supervisory Authority (BaFin). This was announced following the license issuance on October 24, 2023. What does this mean? Well, apart from giving BitGo a shiny new badge of approval, it’s a green light for their operations in the bustling European market.
The Path to Compliance
Before this license, BitGo had already been storing crypto assets like Bitcoin (BTC) for clients since 2019 under BaFin’s eagle eye as part of a transitional arrangement. That’s right, they were the kids in the classroom who had to finish their homework before getting full access to the play equipment. As Dejan Maljevic, BitGo Europe managing director, pointed out, obtaining this license marks a crucial step. It’s like getting a gold star in the world of crypto compliance!
Background and Expansion
BitGo’s journey into the European market kicked off back in February 2020, when they established two regulated custodial entities—one in Germany and the other in Switzerland. Immediately after, their German subsidiary, BitGo Deutschland, began offering custody services, with hopes of regulatory approval that was expected to happen in late 2020. Talk about anticipation!
Funding and Future Prospects
In August 2023, BitGo also made headlines by raising an impressive $100 million in a Series C financing round, which boosted their company valuation to a whopping $1.75 billion. It seems that BitGo’s investors, including big names like Goldman Sachs and Galaxy, believe in their potential. With this fresh influx of capital, discussions surrounding prospective deals have already begun. It’s like getting extra toppings on your pizza—always a win!
Germany: A Rising Crypto Economy
This milestone might just be another indicator of increasing cryptocurrency adoption in Germany. According to a recent report by Chainalysis, Germany has risen to become the second-largest cryptocurrency economy in the Central, Northern, and Western Europe region, only trailing behind the United Kingdom. If you were wondering, yes, Germany is still very much the life of the crypto party!
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