BitGo, a leading California-based crypto firm, recently received a Markets in Crypto-Assets (MiCA) license from Germany’s financial watchdog, BaFin. This approval allows BitGo to offer a wide range of crypto services across all 27 EU states, putting it in direct competition with established European players like Boerse Stuttgart Digital and Bitpanda.
With this significant milestone, BitGo aims to serve both crypto-native companies and traditional financial institutions, including banks and asset managers. The company’s Managing Director of BitGo Europe, Harald Patt, expressed excitement about driving crypto adoption in Europe.
While BitGo has yet to announce specific services under the MiCA license, its expansion strategy into the European market is evident. Since establishing its European headquarters in Frankfurt in 2023, BitGo Europe has obtained regulatory registrations in multiple European countries, showcasing its commitment to building a strong regulated presence in the region.
BitGo joins other key players like Boerse Stuttgart Digital and Bitpanda in securing MiCA licenses, indicating a growing trend of global crypto firms expanding their operations in Europe. As the EU accelerates its crypto regulations under the MiCA framework, companies with proper licensing, like BitGo, are poised to have a significant advantage.
In comparison, Europe has emerged as a global leader in crypto-friendly banking, with 63 European banks offering a variety of crypto services such as custody, staking, payments, and full banking services tailored for crypto firms. This dominance is attributed to the EU’s regulatory clarity and long-term investments in digital finance infrastructure.
On the other hand, the United States lags behind, with only 25 banks providing crypto services. However, recent regulatory developments, including guidance from the OCC and the Federal Reserve, indicate a shift towards embracing crypto activities in the U.S. President Trump’s pledge to make America the global crypto capital underscores the country’s efforts to catch up with Europe’s regulatory advancements.
Despite these efforts, Europe’s head start in crypto custody and digital asset services poses a challenge to the U.S. The momentum in Europe’s favor emphasizes the importance of accelerating regulatory clarity and industry support to compete effectively in the evolving crypto landscape.
In conclusion, BitGo’s EU MiCA license marks a significant milestone in its expansion strategy, positioning the company to compete with Europe’s top crypto custodians. The growing dominance of Europe in crypto-friendly banking underscores the need for the U.S. to enhance regulatory clarity and industry support to remain competitive in the global crypto market.