Germany has emerged as the leading country in the cryptocurrency regulation space in Europe. Germany accounts for 36% of the total licenses issued under the Markets in Crypto-Assets (MiCA) framework.
BaFin's recent approval of a full MiCA license for Trade Republic, one of the continent's top fintech platforms, has consolidated this leadership position.
Trade Republic Receives Full MiCA License as Germany Strengthens Crypto Advantage
This license allows Trade Republic to provide cryptocurrency custody services and execute transfers. It also enables the company to execute or transmit customer orders across 30 countries in the European Economic Area (EEA).
Trade Republic manages over 100 billion euros in customer assets and serves more than four million customers across 17 markets, with 2.5 million in Germany.
Patrick Hansen, CEO of Circle, noted that this license allows Trade Republic to independently conduct most of its cryptocurrency activities. The only exception is transaction execution, which still requires collaboration with external market makers like Bankhaus Scheich and B2C2.
"Trade Republic can now almost entirely operate its cryptocurrency services across all 30 EEA countries—only relying on external market makers (or trading platforms) like Bankhaus Scheich and B2C2 for transaction execution," Hansen said.
MiCA, implemented at the beginning of this year, aims to harmonize cryptocurrency regulations across the EU by introducing a single licensing regime for all member states. Companies approved in one country can now provide services across the entire EEA without additional permissions.
This marks a significant shift from the previously fragmented regulatory environment, which required companies to navigate multiple national regimes. As a result, large cryptocurrency platforms like Coinbase, Crypto.com, Kraken, and OKX have moved to comply with the new requirements.
However, the adoption rate has been slower than expected. In the first 100 days, only 15 CASPs registered under this framework. According to Hansen, that number increased to 25 as of May 17, with most MiCA licenses issued in Germany.
"The German regulatory authority BaFin has impressively issued 9 out of the first 25 CASP MiCA licenses in the entire EU... 36% of total EU CASP licenses have been issued in Germany to date," Hansen said.
Hansen emphasized that the MiCA license is now essential for any cryptocurrency company wanting to operate across the EEA.
This requirement has created a competitive race among digital banks, brokers, and traditional financial institutions, all quickly securing their licenses.
"The race has begun: digital banks, brokers, other fintech companies, and even traditional banks are rapidly securing their MiCA licenses before the transition periods end," Hansen said.
