- The European arm of BitGo recently secured a MiCA license through Germany’s BaFin.
- The company said that its move highlights its commitment to regulatory compliance and upholding the highest standards in its services.
BitGo, a digital asset company excelling in serving institutional clients, announced on Monday its successful acquisition of a license under the Markets in Crypto-Assets Regulation (MiCA) regulations. It submitted its application to Germany’s Federal Financial Supervisory Authority (BaFin).
Its successful bid for a MiCA license allows BitGo Europe GmbH’s expansion within the greater European Union jurisdiction through the regulations’ passporting provisions. The company notably established its EU headquarters in Germany in 2023.
BitGo’s Emphasis on a Compliance-Focused Approach
According to Harald Patt, managing director of BitGo Europe, regulatory compliance is central to the company’s business model. He explained that it highlights their dedication to upholding the highest quality of services to the public.
“As a global leader in digital asset infrastructure, regulatory compliance is at the core of our business,” said Patt. “We are proud to receive our MiCA license from BaFin and look forward to supporting the continued growth of crypto adoption in Europe.
“This license underscores our commitment to the highest standards of security, transparency, and trust,” the BitGo official added.
Notable Accomplishments of BitGo
BitGo has been operating since 2013. Over the years, it has made its mark as one of the top Solana (SOL) custodians and prime brokers in the world. Its platform currently holds $100 billion worth of assets under custody and has already created over 9.3 million wallets.
FTX’s bankruptcy estate notably chose the business alongside Kraken to help facilitate the seamless transfer of its assets to affected retail and institutional investors. Meanwhile, its platform is trusted by more than 1,500 institutions and supports 1,300 digital assets.
BitGo’s MiCA license acquisition opens its door to compete with other authorized brokerages, including Crypto.com, Bitpanda, and OKX, across the European Economic Area (EEA).
MiCA in the EU
The proponents and supporters of MiCA had a noble goal in mind. They saw it as an avenue toward legal clarity for crypto businesses and investors. It also established security and transparency measures to protect industry members.
In addition, the rules aimed to streamline the requirements for the expansion and innovation of crypto-asset service providers (CASPs) within the EU while mitigating the risks posed by market manipulation, money laundering, and financial instability.
Overall, MiCA lays the groundwork for a level playing field for businesses operating in the crypto sector. However, some, like Tether, found its rules somewhat overbearing and restrictive, causing them to opt out of its jurisdiction.
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