BitGo has announced that it has received a MiCA license from Germany's Federal Financial Supervisory Authority (BaFin), allowing it to provide regulated crypto services across the European Union.
MiCA License from BaFin for BitGo
On May 12, BitGo announced the receipt of a license from BaFin for its European subsidiary BitGo Europe GmbH, which was established two years ago and registered in various EU countries such as Italy, Spain, Poland, and Greece.
Industry Views on MiCA and Its Impact
The company will serve those seeking to engage with virtual assets through a secure and compliant infrastructure. BitGo sees the EU as a global hub for virtual asset innovation, influenced by MiCA's clear, harmonized approach to laws. However, not everyone in the industry shares BitGo's optimism regarding MiCA. Some members believe that MiCA could lead to the shutdown of certain companies or their mergers, as greater scale is required to meet regulatory demands.
Future of the Crypto Industry Under New Regulations
By the end of 2024, MiCA will come into full effect, aiming to replace the existing regulatory landscape with a single set of rules across all 27 EU member states. According to analysts at TRM Labs, only 17 crypto businesses had obtained authorization under MiCA in seven EU countries, quoting data provided by the European Securities and Markets Authority.
The acquisition of the MiCA license allows BitGo to expand its services in Europe, although the new regulations may also affect other companies in the industry, creating instability for some.
