Germany grants BitGo a license to handle cryptocurrency assets.

Germany grants BitGo a license to handle cryptocurrency assets.

The German Federal Financial Supervisory Authority (BaFin) reportedly granted cryptocurrency custodial company BitGo a custody license, according to Financial Magnate's report on Nov. 26. 1.

As per BitGo Europe's managing director, Dejan Maljevic, the licensing signifies a noteworthy achievement for the company and emphasizes the crucial role that BaFin plays in establishing regulations surrounding cryptocurrencies.

As a major global trendsetter in cryptocurrency regulation, BaFin is acknowledged. According to reports, Maljevic stated, "It creates a secure regulatory framework while enabling the progress that digital currencies entail.".

Prior to this licensing, BitGo helped its clients protect their cryptocurrency holdings under BaFin's oversight via a temporary agreement set up in 2019.

This progression also continues BitGo's recent string of successful developments. The company raised $1.75 billion in valuation in August after securing $100 million in a funding round. CEO Mike Belshe noted at the time that "regulatory safety is just on everybody's minds right now," emphasizing the value of having a license and following regulations. ".

In order to comply with the New York State Banking Law and function as a qualified custodian independently and under regulation, BitGo obtained a New York Trust license in March 2021.

The role of Germany in the European crypto economy.

Germany is regarded as having one of the most accommodating crypto-regulatory frameworks in all of Europe.

This places the country as the second-biggest cryptocurrency economy in Europe, according to a recent Chainalysis analysis. Germany was also named the world's most crypto-friendly nation in a 2022 CoinCub ranking, which cited the country's robust legal frameworks and regulatory clarity.

In light of this, the nation passed laws enabling businesses to issue cryptocurrency shares. In addition, a number of measures have been developed by the nation's regulatory bodies to safeguard individuals within their purview.

Large, established financial firms such as Deutsche Bank AG have consequently applied to the authorities for licensing related to cryptocurrencies.

Though the region is pro-crypto, cryptocurrency companies like Binance and WorldCoin have had trouble there.

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