Market News

EU's Crypto Firms Find Compliance Aid with BitGo's MiCA Strategy

As the deadline for obtaining licenses under Europe's Markets in Crypto Assets (MiCA) regulation approaches, BitGo is stepping in to support crypto firms in compliance.

BitGo Europe is offering a Crypto-as-a-Service platform that simplifies the transition to MiCA compliance for companies.

According to CEO Mike Belshi, firms without a MiCA license can seamlessly integrate their existing wallets into BitGo’s services, contingent upon completing necessary Know Your Customer (KYC) requirements.

This platform allows companies to maintain client relationships and support while benefitting from MiCA-compliant secure storage solutions.

Eligible businesses are also permitted to pursue their own MiCA licenses while using BitGo's infrastructure concurrently.

The pending MiCA compliance deadline, set for the end of the month, could result in many crypto firms shutting down.

Industry estimates suggest that Europe had over 3,000 registered crypto companies as of last year, with a significant number expected to lose registration status as regulatory transitions conclude.

Belshi emphasized that the compliance requirements shouldn’t lead to firm closures, noting that regulators recognize BitGo’s contribution to compliance enhancement.

The cost structure for BitGo’s compliance services is described as affordable, featuring flexible fee options based on client transaction volumes.

In a related note, recent market data indicates a decline in overall exchange volumes while RWA perpetual futures are experiencing unprecedented growth.