Germany’s BaFIN grants crypto license to Trade Republic amid slow MiCA rollout

European fintech giant Trade Republic has secured a full license from Germany’s financial regulator (BaFIN) to offer crypto services. With the move, it became the latest company to get licensed under the Market in Crypto Assets (MiCA) framework.

According to Circle Senior Director for EU Strategy and Policy, Patrick Hansen, who shared the development on X, the firm is now authorized to custody crypto assets, execute orders, receive and transmit orders, and provide crypto transfers on behalf of clients.

The license allows Trade Republic to offer all these crypto services throughout the 30 European Economic Area (EEA) countries. However, it would still rely on trading platforms and market makers to execute trades.

Hansen described the move as evidence of how financial institutions in the region are already making efforts to get licensed under the MiCA before the transition period ends.

He said:

“The race is on: neobanks, brokers, other fintechs, and even traditional banks are all moving quickly to secure their MiCA licenses before transition periods end.”

The transition period for the unifying crypto regulation for Europe is when crypto entities can operate without MiCA licenses in the EU. It is expected to end by the start of July 2026 or until the regulator grants or refuses authorization for companies that have applied.

Trade Republic is one of the leading online brokers in Europe, with over 100 billion in assets under management and eight million customers across several European countries. It expanded to Italy earlier this year.

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.

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