Germany continues to confidently dominate the European crypto market under MiCA regulation. In July, the local regulator added six more companies to the registry, five of which are cooperative banks. These organizations have received permission to execute client orders involving digital assets, but their activities do not extend to the custody or exchange of cryptocurrencies.
To date, more than 70 crypto service providers are registered in the country—an absolute record among all European Union states. This momentum is explained not only by active business adaptation to the new rules but also by the structural features of the German financial system. A developed banking sector, historically oriented toward conservative and cooperative models, has proven to be an ideal environment for implementing MiCA requirements.
Particularly noteworthy is the fact that the regulator links this high activity to the previous crypto licensing regime that operated in Germany before the European regulation took effect. This allowed local players to prepare for the new standards in advance and minimize transition costs. As a result, Germany has not only maintained but also strengthened its position as a key hub for digital finance in Europe.
It is worth noting that the emphasis on banking institutions is a signal for the entire market. Institutional players are increasingly viewing crypto assets as part of client service rather than a speculative tool. However, the limited functionality of the licenses (without custodial and exchange operations) points to a cautious approach by the regulator, which seeks to avoid excessive risks at the initial stage.
The trend is obvious: Germany is setting the standard for other EU countries, and in the coming quarters, we will likely see similar steps from other major economies of the union.
My expert perspective: Germany's success is the result of systematic preparation, not coincidence. Investors and market operators should view the German experience as a benchmark for strategic planning, especially in conditions where MiCA is becoming a unified standard for the entire bloc. Restrictions on custody and exchange may temporarily curb growth, but they create a more predictable environment for long-term investments.