Germany is leading the way in regulating cryptocurrencies in Europe, accounting for 36% of all licenses issued under the Markets in Crypto-Assets (MiCA) framework. A recent decision by BaFin to grant Trade Republic, a prominent fintech platform, a full MiCA license has solidified this position of leadership.

With this license, Trade Republic has been authorized to provide crypto custody services, execute client orders, and facilitate transfers across the 30 European Economic Area (EEA) countries. Managing assets exceeding €100 billion and catering to over four million customers in 17 markets, with 2.5 million in Germany alone, Trade Republic is set to internalize most of its crypto activities under this license.

The MiCA framework, in effect since the beginning of the year, was designed to standardize crypto regulations across the EU through a unified licensing system that allows approved firms to operate in all EEA member states without the need for additional permissions.

Despite the slow initial uptake – with only 15 Crypto-Asset Service Providers (CASPs) registering within the first 100 days – the trend has since picked up, with 25 licenses granted as of May 17, primarily in Germany. Obtaining a MiCA license is now considered crucial for any crypto business aiming to function across the EEA, prompting a competitive rush among neobanks, brokers, and traditional financial institutions to secure their licenses before the transition periods expire.