Germany has cemented its position as a regulatory hub for digital assets in Europe, as BitGo — a leading cryptocurrency custodian backed by Goldman Sachs — officially secured its Markets in Crypto-Assets Regulation (MiCA) license. Approved by Germany’s financial watchdog, the Federal Financial Supervisory Authority (BaFin), this milestone authorizes BitGo Europe to provide regulated digital asset services across the European Union.
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This development marks a significant advancement for BitGo, reinforcing its commitment to compliance, security, and institutional-grade infrastructure in one of the world’s most structured regulatory environments.
BitGo’s Regulatory Expansion in the EU
Founded in 2013 in Palo Alto, California, BitGo has long been a pioneer in crypto custody solutions. The company specializes in safeguarding digital assets like Bitcoin on behalf of clients, offering secure storage, transaction management, and institutional-grade security protocols.
In 2023, BitGo established its European headquarters in Frankfurt, Germany — a strategic move signaling its intent to deepen its presence in the EU market. Since then, the firm has obtained local registrations in several EU countries, including Italy, Spain, Poland, and Greece. The MiCA license now enables BitGo Europe GmbH to operate seamlessly across all 27 EU member states under a unified regulatory framework.
“With the MiCA license now secured, BitGo can operate across the entire EU under a unified, forward-looking regulatory framework,” the company stated in its official announcement on May 12.
Harald Patt, Managing Director of BitGo Europe, emphasized the importance of trust and compliance:
“This license underscores our commitment to the highest standards of security, transparency, and trust.”
The approval positions BitGo among a growing cohort of crypto firms aligning with MiCA — the EU’s comprehensive regulatory framework designed to bring clarity, consumer protection, and market stability to the digital asset ecosystem.
Scope of Services Under MiCA Authorization
Under the MiCA license granted by BaFin, BitGo Europe is authorized to offer two core services:
- Cryptocurrency custody
- Staking of digital assets
A BitGo spokesperson confirmed to Cointelegraph that the German entity is currently regulated solely for these activities:
“BitGo’s German entity is only regulated for custody and staking, so this means that BitGo Europe GmbH can provide custody and staking of digital assets under BaFin and MiCA.”
While trading, lending, or issuance of stablecoins are not part of the current authorization, this focused scope allows BitGo to deliver compliant, secure services tailored to institutional clients such as banks, asset managers, fintechs, and crypto-native firms.
Custody remains a critical component of institutional adoption, providing insured storage and multi-signature security to protect high-value holdings. Staking services, meanwhile, allow clients to earn yield on proof-of-stake assets while maintaining regulatory compliance — an increasingly important feature as more traditional finance players explore passive income opportunities in digital assets.
BitGo has indicated plans to expand its product suite in the future, aiming to deliver a broader range of institutional-grade digital asset solutions across Europe.
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Germany’s Role as a MiCA Gateway
Germany has emerged as a preferred jurisdiction for crypto firms seeking MiCA compliance. BaFin has been proactive in processing applications, granting early licenses to major players such as Bitpanda and Boerse Stuttgart Digital Custody in 2025.
Despite the official announcement from BitGo on May 12, BaFin’s public registry had not yet updated to reflect the MiCA status as of May 12 at 8:30 am UTC. However, industry experts note that administrative delays in public databases are common and do not invalidate the approval.
The country’s robust financial infrastructure, skilled workforce, and clear regulatory guidance make it an attractive base for firms aiming to scale across Europe. For global custodians like BitGo, establishing a foothold in Germany offers both operational efficiency and regulatory credibility.
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Frequently Asked Questions (FAQ)
Q: What is a MiCA license?
A: The Markets in Crypto-Assets Regulation (MiCA) is a comprehensive EU regulatory framework governing crypto asset service providers. A MiCA license allows firms to operate across all EU member states under harmonized rules covering transparency, consumer protection, and market integrity.
Q: Can BitGo offer trading or lending services under its MiCA license?
A: No. Currently, BitGo Europe is authorized only for cryptocurrency custody and staking services under BaFin’s supervision. Other activities like trading or lending would require additional approvals.
Q: Why did BitGo choose Germany for its EU headquarters?
A: Germany offers a stable regulatory environment, strong financial infrastructure, and early adoption of MiCA licensing. Its central location and skilled workforce make it ideal for scaling pan-European operations.
Q: Is BitGo’s MiCA license active across all EU countries?
A: Yes. Once granted by a national regulator like BaFin, a MiCA license provides “passporting” rights, allowing BitGo Europe to offer approved services in all EU member states without needing separate national licenses.
Q: How does MiCA impact institutional crypto adoption?
A: MiCA increases investor confidence by imposing strict requirements on licensing, capital reserves, cybersecurity, and disclosure. This regulatory clarity encourages banks and asset managers to integrate digital assets into their offerings.
Q: What types of clients use BitGo’s services?
A: BitGo serves institutional clients including banks, hedge funds, asset managers, fintech companies, and crypto-native businesses that require secure, compliant custody and staking solutions.
With its MiCA license secured, BitGo is well-positioned to support the growing demand for regulated digital asset infrastructure in Europe. As traditional finance increasingly embraces blockchain-based assets, compliant custodians will play a pivotal role in bridging innovation with regulatory trust.