Crypto custodial firm BitGo reportedly secured a cryptocurrency custody license from the German Federal Financial Supervisory Authority (BaFin), Financial Magnate reported Nov. 1.

The licensing represents a significant milestone for BitGo in Europe and highlights the important role BaFin plays in setting crypto regulation, according to Dejan Maljevic, the managing director of BitGo Europe.

“BaFin is recognized as one of the world’s key trendsetters in crypto regulation. It enables the progress that digital currencies entail while creating a secure regulatory framework,” Maljevic reportedly said.

Before this licensing, BitGo had been assisting its customers in safeguarding their cryptocurrency holdings under BaFin’s supervision through a transitional arrangement established in 2019.

Meanwhile, this development continues BitGo’s recent positive streak. In August, the firm secured $100 million in a funding round that pushed its valuation to $1.75 billion. At the time, CEO Mike Belshe emphasized the importance of being licensed and regulated, stating that “regulatory safety is just on everybody’s minds right now.”

BitGo secured a New York Trust license in March 2021, allowing it to operate as an independent and regulated qualified custodian under the New York State Banking Law.

Germany’s role in Europe crypto ecosystem

Germany is recognized as one of the most friendly crypto-regulatory environments in Europe.

A recent study by Chainalysis has positioned the nation as Europe’s second-largest cryptocurrency economy. Additionally, a 2022 CoinCub ranking claimed Germany was the world’s most crypto-friendly country, citing its regulatory clarity and strong legal frameworks.

For context, the country introduced regulations allowing companies to issue crypto shares. Besides that, the country’s regulatory authorities have also formulated several measures designed to protect people under jurisdictions.

This has resulted in major traditional financial institutions like Deutsche Bank AG applying for crypto-related licensing with the authorities.

However, crypto firms like Binance and WorldCoin have struggled within the region despite its pro-crypto tendencies.