Trade Republic Scores Crypto License from BaFIN—While Europe’s MiCA Drags Its Feet
Germany’s financial watchdog just handed Trade Republic a golden ticket—full crypto custody approval—as EU regulators fumble their MiCA rollout. Another win for agile fintechs over bureaucratic dinosaurs.
BaFIN’s greenlight lets the Berlin-based broker expand its crypto offerings, sidestepping the regulatory purgatory plaguing traditional banks. Meanwhile, Brussels’ much-hyped MiCA framework remains stuck in committee hell—classic EU efficiency.
Pro tip for TradFi giants: maybe spend less on compliance consultants and more on innovation? The future’s moving fast—with or without you.
25 companies have secured MiCA licenses
Meanwhile, Trade Republic getting authorization to offer crypto services by BaFIN means that 25 companies have now gotten licenses under the MiCA framework. This highlights how slow the licensing process has been in Europe, given that MiCA went into full force in December 2024.
There have been concerns that the region’s regulatory approach may harm its efforts to attract crypto entities, especially when other regulators in Asia, the US, and the Middle East have become more permissive of the industry.
However, it appears companies are still making efforts to comply with the new regulatory standards in Europe. Interestingly, the German financial regulator is leading in approval rate, with the BaFIN licensing nine out of the 25 countries. Hansen noted that this is 36% of all regulating crypto service providers on the continent.
So far, the biggest name to have secured a license appears to be Circle, the issuer of USDC stablecoin. The company remains the only MiCA-licensed global stablecoin issuer after getting authorization as an electronic money institution from France’s ACPR, allowing it to issue USDC and EURC.
Other crypto firms that have obtained licenses include OKX, BitGo Europe, MoonPay, Hidden Road, Socios.com, and BitStaete have also secured licenses. Interestingly, Ripple recently bought Hidden Road, likely to gain easier access to the European markets.
Potential impacts of MiCA on the European crypto sector
While a few major crypto companies already have MiCA licenses, others, such as Binance, Kraken, Robinhood, and Tether, are currently not licensed in the region. Although most of them have started the application process, there is a risk that some of these companies may not operate in Europe.
Tether, for instance, has already decided against getting a MiCA license for its USDT stablecoin, claiming that the requirements are dangerous for stablecoins. This has made MiCA-compliant platforms in the region that delist USDT.
However, it is not just the big companies that this affects. Some experts believe that MiCA could leave lasting damage on the crypto startup scene in Europe as most startups may not meet the licensing standards or be able to bear the cost of the process.
Crypto attorney Ilja Nikiforov predicted that around 75% of European registered crypto companies would lose their registration by mid-2025 if they cannot get a MiCA license. He added that funding for European crypto startups has declined by more than 90% from the 2022 peak.
Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites
