Germany has firmly cemented its status as the main crypto hub of the European Union. In July, the Federal Financial Supervisory Authority (BaFin) added six new companies to the MiCA register, five of which are cooperative banks. These organizations have been granted the right to execute client orders involving digital assets, but their powers are limited: custody and exchange of cryptocurrencies are not yet permitted for them.
More than 70 licensees — a record for the EU
With the July additions, the total number of registered crypto service providers in Germany has exceeded 70. This is more than in any other EU country, including traditionally active jurisdictions such as France, Malta, and Ireland. Notably, the German regulator attributes this high level of activity not only to the transition to the unified European MiCA regime but also to the developed banking infrastructure and the effective operation of the previous national crypto licensing system.
Why this matters for the market
The mass entry of banks into the crypto sphere is a signal of institutional maturity. Cooperative banks, traditionally focused on retail clients and small businesses, are beginning to offer digital asset services, expanding access to them for a broad audience. At the same time, the restriction on custody and exchange indicates a conservative approach: the regulator clearly prefers phased implementation, minimizing risks to financial stability.
In my view, it is Germany that will set the standard for MiCA application in Europe. Its experience will show how effectively a combination of strict oversight and banking participation can stimulate the legal crypto market. If the model proves successful, other EU countries are likely to follow its lead, which will accelerate the consolidation of the entire European crypto space.