BitGo Offers MiCA Compliance Infrastructure in Europe for Unlicensed Wallet Firms

BitGo, the U.S. cryptocurrency custodian, is rolling out infrastructure aimed at helping European crypto firms operate under the European Union's Markets in Crypto-Assets, or MiCA, framework.

CoinDesk reported on June 17 that BitGo Europe said it would offer its Crypto-as-a-Service product to European crypto companies under a license from Germany's financial regulator, BaFin.

The company said the service would allow European crypto firms to continue operating in line with MiCA rules. Wallet providers that have not yet secured a MiCA license can keep operating by integrating with BitGo's wallet infrastructure.

Chief Executive Officer Mike Belshe said wallet providers without a MiCA license can sign up with BitGo and connect their existing wallets to BitGo's wallet system. They would still need to complete MiCA-compliant know-your-customer, or KYC, procedures.

The launch comes as the final deadline for the MiCA transition falls at the end of June, raising pressure on unlicensed firms to leave the market. About 75% of European crypto companies that were approved before MiCA are projected to lose their authorized status once the deadline passes.

BitGo said crypto firms can use its infrastructure while separately applying for their own licenses. In other words, they can pursue regulatory approval while integrating external infrastructure.