Cryptocurrency guardian BitGo acquires German BaFin license to expand service offerings across Europe.
Revamped BitGo EU Expansion: MiCA License Achieved, Crypto Services on the Horizon
Crypto custody pioneer BitGo has secured a coveted MiCA license from Germany's BaFin, setting the stage for wide-ranging crypto services across Europe. This marks a significant milestone for the industry, further connecting the traditional finance sector with digital assets.
In a Monday announcement, BitGo revealed that the license was granted to BitGo Europe GmbH, its European subsidiary, whose presence already spans crucial European markets like Germany, Italy, Spain, Poland, and Greece.
"We're thrilled to extend our secure, compliant services to crypto-native companies and traditional institutions alike, helping steer the digital asset landscape towards greater trust and acceptance," said BitGo, citing the EU's progressive approach to crypto regulations as the catalyst for this expansion.
In its pursuit of regulatory alignment, the European Union has embraced the MiCA legislation, designed to establish a unified regulatory framework for digital asset service providers (DASPs) across its 27 member states. While this breakthrough move has prompted institutional participation in the crypto sphere, it has also sparked debate within the industry.
Some in the crypto world remain sceptical about the extent to which MiCA might influence smaller players. Concerns revolve around potential shutdowns or mergers as firms vie for the increased scale required to meet new regulatory norms. As of March 2025, only 17 crypto businesses have been authorized under MiCA, with Spain pushing to complete implementation ahead of schedule in a bid to become a prominent EU crypto hub.
Despite this ongoing uncertainty, BitGo remains optimistic about the future of digital assets in Europe. The company's latest achievement underscores the growing momentum towards legitimizing crypto services within the traditional finance ecosystem, thereby fostering greater transparency, security, and trust.
MiCA License Distribution Challenges:
The path to regulatory compliance under MiCA has been fraught with delays and heightened scrutiny. The licensing process, initially expected to take a few months, has evolved into a drawn-out six-month endeavor, financially stressing many crypto startups. Compliance costs have soared, with some facing expenses topping €60,000, compelling some to reconsider their operations or pursue mergers and acquisitions.
- BitGo Europe GmbH, the European subsidiary of crypto custody pioneer BitGo, seeks to extend its secure, compliant services to both crypto-native companies and traditional institutions after achieving the MiCA license.
- The increasing costs of compliance, including the €60,000 expense faced by some companies, have led some crypto startups to consider adjusting their operations or pursuing mergers and acquisitions.
- Despite these challenges, the MiCA licensing process has played a significant role in fostering greater transparency, security, and trust in the digital asset landscape across Europe, especially with institutional participation.
- With the ongoing debate about MiCA's potential impact on smaller players, many announcements regarding DEFI (decentralized finance), DEX (decentralized exchange), staking, and token technology advancements in European crypto businesses are expected as they seek to comply with the new regulatory norms.
