A Major Regulatory Upgrade

BitGo has secured approval from Germany’s financial regulator BaFin to expand its Markets in Crypto-Assets (MiCA) license, now covering regulated crypto trading across Europe. The decision upgrades its May 2025 authorization—which allowed custody, transfers, and staking—by adding a full trading permission set.

With this step, BitGo positions its Frankfurt subsidiary as a one-stop, MiCA-compliant platform where institutions can trade, custody, and operationalize digital assets inside a single regulated environment.

Why It Matters

• Integrated Infrastructure: Institutions get trading, custody, and settlement under one roof—cutting reliance on fragmented brokers, exchanges, and custodians.
• EU Passporting: By anchoring with BaFin, BitGo can service clients across the European Union without separate country approvals.
• Traditional Market Parallels: A regulated venue, audited controls, and transparent rulebooks mirror the standards of traditional finance.

BitGo’s Three Pillars

1. Counterparty Safety: Custody-first settlement with attestation, segregation, and policy-driven key management.
2. Market Integrity: Surveillance tools, best-execution policies, and vetted liquidity sources to deliver resilient order books.
3. Interoperability: APIs and onboarding aligned with institutional workflows for treasuries, fund admins, and OMS/EMS vendors.

Client Benefits

• Efficiency: Asset managers and pensions can consolidate tickets, financing, and safekeeping.
• Deterministic Settlement: Trades land directly into regulated custody, reducing reconciliation risks.
• Audit-Ready Reporting: Compliance officers gain one venue with uniform MiCA-based oversight.

Europe’s Growing Role

This approval reinforces Europe’s momentum toward regulated crypto infrastructure. MiCA sets a uniform baseline for custody, valuation, and disclosures, while BaFin’s green light allows BitGo to operate as a pan-EU institutional trading hub.

As institutional demand for Bitcoin, Ether, and altcoins scales, BitGo can capture flows that otherwise leak to offshore venues or bespoke OTC desks.

Risks and Realities

• Market Testing: Institutions will scrutinize spreads, routing quality, and uptime before deploying size.
• Competition: Exchanges and banks are also racing to secure MiCA-compliant platforms.
• Execution Risk: Success depends on BitGo proving liquidity, compliance resilience, and operational stability.

Bottom Line

BaFin’s approval extends BitGo’s MiCA license from custody-only services to full trading, transforming its Frankfurt branch into an EU-wide institutional platform. By blending regulated execution, safekeeping, and governance, BitGo now stands as a major player in Europe’s professionalized crypto market structure.