Crypto & Digital Assets · Germany
Crypto license in Germany: MiCA CASP requirements (2026)
Germany shaded by its crypto & digital assets status
Crypto is regulated in Germany, primarily under EU Markets in Crypto-Assets Regulation (MiCAR, Regulation (EU) 2023/1114) implemented nationally by the Kryptomärkteaufsichtsgesetz (KMAG, published in the Federal Law Gazette 27 Dec 2024); supplemented by the Banking Act (KWG), the Electronic Securities Act (eWpG, in force since 10 June 2021) and the AML Act (GwG). Competent authority: BaFin, with the Deutsche Bundesbank co-involved for prudential supervision..
Crypto is fully legal in Germany and is comprehensively regulated. Since 30 December 2024 the EU-wide MiCAR regime applies, with the national KMAG giving BaFin enforcement powers and transitional rules; Germany's earlier KWG crypto-custody licence and the eWpG framework for tokenised securities remain part of the stack. The 12-month national grandfathering for KWG-licensed crypto firms expired on 31 December 2025, so CASPs now operate in Germany only with a MiCAR authorisation (or by EU passport).
How to get a crypto license in Germany
To provide crypto-asset services in Germany you need a MiCA CASP authorisation (Crypto-Asset Service Provider), supervised by the Federal Financial Supervisory Authority (BaFin), under the EU Markets in Crypto-Assets Regulation (MiCA), Title V.
- Authority
- the Federal Financial Supervisory Authority (BaFin)
- License required
- a MiCA CASP authorisation (Crypto-Asset Service Provider)
- Framework / law
- the EU Markets in Crypto-Assets Regulation (MiCA), Title V
- Minimum capital
- €50,000–€150,000 minimum, by service class (Class 1/2/3)
- Timeline
- about 40 working days of substantive review; 1–3 months for a well-prepared application
- Cost
- an application fee of roughly €5,000–€25,000, plus ongoing supervisory fees
- Passporting
- Yes — a single MiCA CASP licence passports across all 27 EU member states.
Crypto license in Germany: FAQ
Yes. To provide crypto-asset services in Germany you need a MiCA CASP authorisation (Crypto-Asset Service Provider), supervised by the Federal Financial Supervisory Authority (BaFin), under the EU Markets in Crypto-Assets Regulation (MiCA), Title V.
The Federal Financial Supervisory Authority (BaFin).
An application fee of roughly €5,000–€25,000, plus ongoing supervisory fees.
Typically about 40 working days of substantive review; 1–3 months for a well-prepared application.
Yes — a single MiCA CASP licence passports across all 27 EU member states.
Key points
MiCAR Titles III-VI applied from 30 December 2024. BaFin is the national competent authority; CASP authorisation applications go to [email protected] (Art. 62 MiCAR) with Bundesbank involvement.
The Kryptomärkteaufsichtsgesetz (Crypto-Markets Supervision Act) was published in the Bundesgesetzblatt on 27 December 2024; it integrates MiCAR into German supervisory law and gives BaFin powers including the simplified procedure under § 50(3) KMAG / Art. 143(6) MiCAR.
Germany used the shortest national grandfathering window (12 months, not the 18-month EU maximum). Firms previously licensed under the KWG for crypto custody had to obtain a MiCAR CASP authorisation by 31 December 2025 to continue operating in Germany.
The Electronic Securities Act (eWpG) in force since 10 June 2021 allows DLT-based 'crypto securities' (§ 16 eWpG); the crypto-securities register operator requires a BaFin licence under § 1(1a) KWG. Prospectus rules (EU Prospectus Regulation) apply to public offerings.
On 1 August 2025 BaFin approved AllUnity (Deutsche Bank DWS / Flow Traders / Galaxy Digital JV) as Germany's first MiCAR-authorised euro EMT issuer, illustrating that the EMT/ART regime is fully operational.
Under § 23 EStG, private individuals' crypto gains are tax-free if held > 1 year; if sold within a year, gains above the €1,000 Freigrenze are taxed at the personal income-tax rate (up to 45% + solidarity surcharge). BMF's updated circular of 6 March 2025 sets out reporting/documentation rules and addresses DeFi/staking.
Timeline - major decisions & events
Germany chose a strict transition: crypto-asset service providers holding old KWG licenses had to obtain a MiCA CASP authorisation by year-end or cease operating, well ahead of the EU-wide 1 July 2026 backstop. By December 2025 BaFin had granted the most CASP licenses of any EU member state (around 27).
BaFin ↗The EU Digital Operational Resilience Act, implemented in Germany via the FinmadiG, became applicable, imposing ICT risk-management, incident-reporting and governance requirements on crypto-asset service providers alongside other financial entities.
BaFin ↗Parliament adopted the FinmadiG, whose centerpiece is the new Crypto Markets Supervision Act (KMAG) implementing MiCA and DORA into German law, defining BaFin's powers, sanctions and a grandfathering regime running to 31 December 2025.
Mayer Brown ↗The Bundesfinanzhof ruled that cryptocurrencies are 'other economic assets' and that profits from sales within a one-year holding period are taxable as private sales under the Income Tax Act, rejecting claims of an unconstitutional enforcement deficit. Gains after one year remain tax-free.
Library of Congress ↗The KryptoFAV extended the Electronic Securities Act to allow investment fund units to be issued as crypto securities recorded on distributed ledgers, broadening tokenisation beyond debt instruments.
BaFin ↗Germany enabled purely electronic securities without paper certificates, creating 'crypto securities' registered on DLT and making crypto-securities registry-keeping a BaFin-supervised financial service, a core part of the federal blockchain strategy.
BaFin ↗BaFin published its guidance notice detailing the statutory definition of crypto custody business under section 1(1a) KWG and the requirements for the new licensing regime.
BaFin ↗Implementing the EU's 5th Anti-Money-Laundering Directive, Germany added 'crypto assets' as a financial instrument and created a new crypto custody business requiring BaFin authorisation (minimum capital €150,000), making Germany an early mover in formally licensing crypto custodians.
BaFin ↗The Cabinet approved a blockchain strategy across five fields of action, signaling support for the technology and tokenised securities while explicitly rejecting private stablecoins (e.g. Libra) as alternatives to sovereign currency. It set the agenda for the eWpG and crypto regulation.
Bundesregierung ↗In a published expert article, BaFin took the position that Bitcoin are 'units of account' and therefore financial instruments under section 1(11) KWG, meaning commercial trading could require authorisation, Germany's foundational regulatory stance on crypto.
BaFin ↗Germany - other topics
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