BitGo Gains EU Approval, Expands Crypto Custody Services Across Europe
- BitGo gets BaFins approval to offer crypto custody services across all EU states.
- Company can now operate under the EUs unified MiCA regulatory framework.
- BitGo strengthens its position as a top institutional crypto custodian.
BitGo has been approved by Germanys Federal Financial Supervisory Authority (BaFin), which enables the company to provide institutional crypto custody services in 27 European Union member states. This move makes BitGo one of the first U.S. firms to adhere to the EUs unified crypto rules, Markets in Crypto-Assets (MiCA).
This approval is part of the MiCA frameworks approach to create unified crypto rules in the EU. This enables BitGo to deliver digital asset services to all countries in the region without the need to obtain individual country licenses. BitGo Europe GmbH, founded in Frankfurt in 2023, will manage the companys services under the new regulatory requirements.
BitGo Enters EU Crypto Market
The BaFin license marks a major step in BitGos expansion across Europe. BitGo can now deliver a variety of services, such as crypto custody, staking, and self-custodial hot wallets, to its institutional clients. Harald Patt, managing director of BitGo Europe GmbH, expressed satisfaction in the companys commitment to regulatory compliance, security, transparency, and trust.
The MiCA framework, effective from 2024, provides clear regulations for stablecoins, exchanges, and crypto custodians. It requires all crypto firms in the EU to adhere to particular standards on consumer protection, transparency, and capital. Moreover, stablecoin issuers are required to meet strict reserve standards to increase regulatory control and market stability.
Companies Rush to Secure MiCA License
BitGo currently operates in several EU countries, such as Italy, Spain, Poland and Greece. The BaFin enables BitGo to provide services to clients in all EU countries under a unified license. BitGo also holds regulatory approvals in additional countries which further solidifies its position in the European market.
BitGos European expansion comes after other top crypto companies, such as Crypto.com and Bitpanda, obtained MiCA licenses. The MiCA licenses have enhanced the competitiveness of these businesses in the region. However, banks and fintechs remain hesitant to secure MiCA licenses, which benefits crypto-native firms like BitGo.
BitGo Crypto Custody Services
BitGo provides custody for 80 of the top 100 digital coins and tokens, which accounts for more than $100 billion in assets. BitGo serves more than 9.3 million wallets and oversees $48 billion in staked assets in Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
BitGos EU expansion is part of a larger plan to deliver secure and compliant crypto custody services around the world The company is currently a top custodian for Solana and seeks to meet the institutional market demand for digital asset custody.
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Read more: https://www.tronweekly.com/bitgo-secures-mica-license-for-crypto-custody/
Text source: TronWeekly
