BitGo Secures EU-Wide Crypto Custody Approval Under MiCA Framework

BitGo, a prominent U.S. crypto custody provider, has achieved a significant milestone by securing regulatory approval from Germany's Federal Financial Supervisory Authority, BaFin. This approval allows BitGo to expand its services across all 27 member states of the European Union under a single regulatory framework, the Markets in Crypto-Assets (MiCA) framework. This move positions BitGo as one of the first American digital asset firms to gain recognition under the EU's unified crypto rules, enabling it to offer crypto custody services to its institutional clients throughout Europe.

Harald Patt, managing director of BitGo's European arm, emphasized the company's commitment to the highest standards of security, transparency, and trust. BitGo's expansion into Europe began in 2023 when it broke ground for its EU headquarters in Frankfurt. Since then, the firm has secured registrations in several countries, including Italy, Spain, Poland, and Greece. The approval from BaFin now allows BitGo to operate across the entire EU without the need for country-specific approvals, streamlining its regulatory compliance and operational efficiency.

The MiCA framework, passed by the European Parliament in April 2023, aims to harmonize rules across EU member states for crypto assets, including stablecoins, exchanges, and custodial services. It requires crypto firms to register with national regulators and meet stringent consumer protection, transparency, and capital requirements. Stablecoin issuers face additional oversight, including reserve mandates, and the framework also targets market abuse and insider trading in crypto markets. BitGo's European regulatory win stands in contrast to its experience in the United States, where the firm faced challenges with its plans to become a qualified custody solution in New York in 2020. Despite these hurdles, BitGo received approval and reached a valuation of $1.75 billion by 2023.

In March of this year, the U.S. Treasury convened a panel called "Safeguarding America's Bitcoin," which included BitGo and other Bitcoin custodians. Earlier in April, BitGo was listed as a panelist for the SEC's roundtable on crypto custody. These engagements highlight the ongoing dialogue and regulatory scrutiny in the U.S. crypto industry, contrasting with the more streamlined regulatory environment BitGo now enjoys in Europe under the MiCA framework. BitGo's success in Europe underscores the growing importance of regulatory compliance and the need for crypto firms to navigate the evolving landscape of digital asset regulations both domestically and internationally.