Germany leads approvals as banks push into crypto under MiCA regime

Authorities in Germany are granting more authorizations under Europe’s MiCA law than those in other nations of the European Union. Almost all of the recently licensed entities are banking institutions, which have been trying to enter the regulated crypto market. Meanwhile, Berlin’s attempt to abolish a tax break for long-term coin investments is facing resistance, forcing the government to delay the plan.

Bundesrepublik issues most MiCA licenses in Europe with banks forming the bulk Germany is establishing itself as the leader in terms of new authorizations under the Old Continent’s now fully enforced Markets in Crypto Assets (MiCA) regulation. The Federal Republic is issuing more licenses in accordance with the current rules than any other EU member state, local crypto media revealed, citing official stats. In the third quarter alone, 42 organizations received approvals, the BTC Echo website reported on Wednesday, quoting a new report from FinPlanet.

That compares to a total of 72 across all of Europe, according to the survey, which was released by the digital-asset management consulting and compliance firm this week. Europe’s economic powerhouse and major cryptocurrency market accounted for more than half of all new authorizations in the region, the analysis shows. The latter was based on data sourced from Germany’s Federal Financial Supervisory Authority (BaFin) and the European Securities and Markets Authority (ESMA).

It’s worth noting that all but one of the newly licensed entities are banking institutions. Among them are a number of cooperative banks, remarked the crypto news outlet. Germany’s Deutsche Bank is in the group as well.

The Frankfurt-headquartered banking and financial services giant obtained its regulatory approval under MiCA last month. Out of a total of 100 companies registered as crypto service providers (CASPs), 65 are banks, according to FinPlanet’s CASP Radar report covering Q3 of 2026. German regulators authorized 58 institutions during the previous quarter.

Another 120, licensed in other EU nations, will be able to operate in the Bundesrepublik, too. MiCA licensing slows down across Europe The EU’s MiCA regulation was passed by the European Parliament in April 2023 and formally adopted by the Council in mid-May of the same year. The comprehensive framework for digital assets and operations officially entered into force on June 29, 2023, with its publication in the Official Journal of the European Union.

However, it took another three years for the law to enter into full effect as it was rolled out in several stages, including for stablecoins and other asset-backed tokens as well as CASPs in 2024. A transitional period allowing national governments in member states to transpose the legislation into domestic law and apply the pan-European rules ended on July 1, 2026. Since that date, all providers of crypto-related services in the European Economic Area (EEA), including the non-EU states Norway, Iceland, and Liechtenstein, must hold a MiCA license.

While during the studied period, the number of licensed entities rose to 363, growth in new authorizations has slowed significantly, from 105 in the second quarter. Besides, not all are granted regulatory approvals, as was the recent case with Bitcoin. de, one of oldest and largest coin trading platforms in Germany and Europe.

Earlier in October, Bafin rejected the MiCA application filed by its operator, futurum bank AG, part of Bitcoin Group SE. The future remains uncertain for the crypto marketplace, which serves more than 1 million users. Over the past years, crypto investors have enjoyed favorable treatment in Germany, including a tax break for gains from investments in digital assets held for more than a year.

Indications that the federal government in Berlin intends to scrap the exemption for long-term cryptocurrency investments have been mounting this year. A bill drafted by the Finance Ministry aims to slap a 25% capital gains tax on all profits from crypto trading, regardless of the holding period, as Cryptopolitan reported in September. The good news for crypto owners in Germany this week is that the coalition cabinet of Chancellor Friedrich Merz is apparently postponing the decision under public pressure and opposition from members of the ruling majority in the Bundestag.

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