BitGo opens MiCA route for strained crypto firms

BitGo has moved to position its BaFin-regulated European arm as a compliance bridge for crypto companies racing to avoid disruption when the EU’s MiCA transition period closes on 1 July.

The digital-asset infrastructure group says its Crypto-as-a-Service platform can give eligible banks, fintechs and crypto businesses a way to keep offering wallet, custody and trading functions across Europe without building a full regulated stack before the deadline. The proposal is aimed at firms that can meet onboarding, customer due-diligence and operational standards, but either lack a Markets in Crypto-Assets licence or are still awaiting a final decision from a national supervisor.

BitGo Europe GmbH, based in Frankfurt, received its MiCA licence from Germany’s Federal Financial Supervisory Authority in May 2025. Its current European permissions cover transfer services, custody and administration, qualified crypto custody, exchange of crypto assets for money or other crypto assets, order execution and reception and transmission of orders on behalf of clients.

The timing has given BitGo a commercial opening. MiCA, agreed in 2023 and phased in from 2024, is replacing a patchwork of national crypto regimes with a common rulebook covering authorisation, governance, capital, safeguarding, market abuse and consumer disclosure. Existing providers that relied on national registrations before 30 December 2024 were allowed temporary relief in some jurisdictions, but that grandfathering ends across Europe on 1 July. Providers without authorisation are expected to stop serving EU clients and execute wind-down plans, including client notices and asset transfers to authorised firms or self-hosted wallets.

BitGo’s model is designed to make migration less disruptive. Its platform uses APIs and webhooks to let a client company embed crypto functions into its own interface while BitGo Europe provides regulated infrastructure behind the scenes. The package includes know-your-customer flows, multi-asset wallets, qualified custody, SEPA on- and off-ramps, trading, settlement, policy controls and customer-asset insurance coverage of up to $250m.

Chief Executive Mike Belshe has framed the offer as a route for firms that already operate wallets but do not yet hold their own MiCA licence. “All of your clients can be onboarded and have sub-accounts inside of BitGo,” he said, while stressing that the client company would still handle customer support and products. The structure means the end user may remain with the familiar brand, while assets are placed in segregated custody under a licensed provider.

The pitch also reflects the new balance of power in Europe’s crypto market. Larger groups that have secured licences, including Coinbase, Kraken, Crypto. com, OKX and Bitstamp, can continue to compete under the passporting system. Smaller exchanges, wallet providers and brokerages face a narrower set of choices: obtain approval, restrict services, sell or migrate customers to a licensed platform.

Regulators have signalled limited tolerance for last-minute fixes. France’s market watchdog warned firms that unlicensed activity after the deadline could trigger blacklisting and legal action. Earlier checks in France showed that, among about 90 locally registered companies without a MiCA licence, roughly 30 per cent had applied, 40 per cent were not seeking authorisation and 30 per cent had not clearly set out their plans. That pattern suggests a compliance gap that infrastructure providers are trying to fill.

The uncertainty is not confined to smaller operators. Binance, the world’s largest crypto exchange by trading volume, has been pursuing a MiCA licence in Greece and has said it will update users before 30 June. Its position has become a test case for whether Europe’s new framework can combine uniform market access with consistent supervision by national regulators.

For BitGo, the opportunity is both regulatory and strategic. The company listed in New York in January after raising $212.8m in its initial public offering, and its European expansion adds a recurring infrastructure business at a point when custody, staking and trading revenues are tied to market cycles. A CaaS model could deepen ties with regulated financial institutions that want crypto exposure without taking on the full compliance burden.