Germany Takes the Lead in EU Crypto Regulation With Surge in MiCA Licenses

Germany has solidified its position as a key player in the European crypto space, emerging as the top country for licensing under the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. According to recent data, Germany currently accounts for 36% of all MiCA licenses granted across the European Economic Area (EEA), underscoring its leadership in digital asset oversight.

Trade Republic Secures Full MiCA License

One of the country’s flagship fintech companies, Trade Republic, has recently been granted a full MiCA license by Germany’s financial regulator, BaFin. The license enables the firm to offer crypto custody services, facilitate transfers, and execute or transmit client orders throughout all 30 EEA member states.

With over €100 billion in assets under management and a customer base of more than four million users—2.5 million of whom are in Germany—Trade Republic’s expansion under MiCA is a significant milestone. This authorization allows the company to internalize nearly all of its crypto operations, requiring external partners only for trade execution. For now, those partners include market makers such as Bankhaus Scheich and B2C2.

“Trade Republic can now operate almost its entire crypto offering in-house across all 30 EEA states,” noted Circle executive Patrick Hansen, highlighting the scale of operational efficiency the license provides.

MiCA: A Unified Crypto Framework for the EU

The MiCA regulation, which officially came into effect earlier this year, is designed to unify crypto laws across the EU, replacing a previously fragmented system of national-level rules. The regulation introduces a passporting regime: once a firm obtains a license in one EU country, it can legally offer services across the entire EEA without needing separate approvals in each jurisdiction.

This harmonization aims to lower compliance burdens while enhancing consumer protection and transparency in the digital asset market.

Several major global crypto players, including Coinbase, Crypto.com, Kraken, and OKX, have taken steps to align with MiCA’s requirements—recognizing that a license is now crucial for continued European operations.

Slow But Steady Adoption Across Europe

Despite the regulation's ambition, adoption has progressed more gradually than initially expected. Within the first 100 days of MiCA's rollout, only 15 Crypto Asset Service Providers (CASPs) had registered under the framework. That number increased to 25 by mid-May, with nine licenses issued in Germany alone, according to Hansen.

“Germany’s BaFin has granted 36% of all EU CASP licenses as of today,” he said, emphasizing the country’s dominant role in shaping crypto compliance standards across the continent.

A Regulatory Race Underway

With MiCA's transitional periods nearing their deadlines, a competitive rush is unfolding. Fintech startups, neobanks, brokers, and even traditional financial institutions are actively seeking regulatory approval to secure their foothold in the evolving market.

“The race is on,” Hansen commented. “Neobanks, brokers, and even traditional banks are moving quickly to secure their MiCA licenses before transition periods end.”