German Financial Regulator Authorizes Cryptocurrency Service License for Trade Republic

# Trade Republic Secures Comprehensive Cryptocurrency Service License in Germany under MiCA Regulations Trade Republic, the prominent German fintech company, has successfully acquired a full cryptocurrency service license from BaFin, Germany's financial regulatory authority, as reported by Cryptopolitan on October 18 (local time). This milestone positions Trade Republic as the latest entity to receive a license under the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework, aimed at providing unified governance for digital assets across the EU. Securing approval from BaFin authorizes Trade Republic to offer an extensive array of cryptocurrency-related services. These include digital asset custody, order execution, order reception and transmission, and crypto transfers for its clients. This license empowers the company to provide these services across 30 countries within the European Economic Area (EEA), although it will still depend on external trading platforms and market makers for executing trades. Patrick Hansen, Senior Advisor for EU Strategy and Policy, commented on X (formerly Twitter) that this licensing underscores the proactive compliance of financial institutions in anticipation of MiCA’s complete implementation. "Fintechs, neobanks, brokers, and traditional financial firms are competing for MiCA licenses," he stated. # MiCA Licensing Scrutiny in Europe During MiCA’s transitional phase, extending until July 2026, cryptocurrency firms can operate temporarily without a license. However, those that do not apply for licensing within this period risk having to cease operations. Trade Republic, currently serving over eight million clients and managing assets exceeding €100 billion, has solidified its status as a major European online broker. Earlier this year, the company expanded its services to Italy, further extending its market outreach. Thus far, 25 companies have obtained MiCA licenses through BaFin, with Germany leading the charge in Europe, boasting nine approvals (36%). Notable MiCA-approved firms include Circle, the issuer of the USDC stablecoin, OKX, BitGo Europe, MoonPay, Hidden Road, Socios.com, and BitStaete. Notably, Hidden Road recently strengthened its European market presence following its acquisition by Ripple. # Impact of MiCA on Europe’s Cryptocurrency Market Major cryptocurrency entities such as Binance, Kraken, Robinhood, and Tether have not yet secured MiCA licenses. While most are in the process of applying, failure to attain regulatory approval could lead to their withdrawal from the European market. Tether has notably criticized MiCA requirements for the USDT stablecoin and has chosen not to apply for a license. As a result, platforms complying with MiCA have already started restricting USDT trading within the region. European crypto startups are also anticipated to face substantial challenges in meeting MiCA’s rigorous standards. Ilja Nikiforov, a lawyer specializing in cryptocurrency, predicted that up to 75% of crypto firms in Europe could lose their registration by mid-2025 if they fail to secure a MiCA license. Nikiforov further noted that investments in European crypto startups have plunged by more than 90% from their peak in 2022.