Germany has reached the milestone of 79 cryptocurrency asset service providers (CASPs) licensed under MiCA.

The European Securities and Markets Authority has updated its MiCA provisional register, adding six new authorized cryptocurrency asset service providers (CASPs) to bring the total number of CASPs across the EU to 331.

8/25/20264 min read

Why does Germany lead in the number of MiCA permits?

BaFin attributes the large number of licenses granted to the size of the German financial industry, the significant number of credit institutions eligible to provide cryptocurrency services, and the existing domestic licensing framework, which allowed for a smooth transition in accordance with MiCA regulations.

Each of the three factors mentioned above deserves separate consideration. The German financial sector comprises numerous credit institutions such as commercial banks, savings banks, cooperative banks, and associations that qualify to offer crypto asset services under the MiCA framework without having to go through the comprehensive and complex licensing process required of new market entrants or crypto-native companies. Under MiCA, credit institutions licensed under the EU Capital Requirements Directive can offer most CASP (crypto asset service provider) services after a simplified notification procedure rather than a full licensing process. This gives Germany's large-scale cooperative banking sector a structural advantage in increasing the number of licensed entities, an advantage that smaller EU countries with fewer established credit institutions would find difficult to replicate.

Germany's existing domestic licensing framework is the second structural element. Prior to the MiCA transition deadline of July 1, 2026, Germany operated one of Europe's most developed national cryptocurrency licensing frameworks under the auspices of BaFin; this framework included a cryptocurrency custody license category, requiring applicants to comply with standards equivalent to MiFID regulations. Companies that had already met BaFin standards before the MiCA came into effect had a shorter compliance gap when applying for a MiCA license compared to organizations in countries that previously lacked a national framework in this area.

The July 1st transition deadline itself clarifies the significance of the registration list. Prior to July 1st, 2026, companies could continue to provide services within the scope of regulation based on their existing national registrations during different transition periods depending on the member country. These mechanisms have reached their final deadline on July 1st, 2026. Previous reports on the MiCA transition deadline indicated that providers without the required licenses would no longer be able to rely on their previous national registrations to continue providing services once the transition period ended. Therefore, the list of licensed entities has become a crucial reference point for determining which entities are operating legally and which have withdrawn from the market or ceased providing services within the scope of regulation.

Trends in the participation of cooperative banks

All six entities that joined the list in August are cooperative banks – community-focused financial institutions that collectively serve tens of millions of individual customers in Germany through a regional branch network. This is not an isolated case. Germany leads with 68 entries, with eight of the nine that joined in July being regional or cooperative banks; this indicates a wave of entry from the traditional financial sector (TradFi) rather than a massive shift by established cryptocurrency companies.

This trend is structurally sound. The compliance requirements that put pressure on startups become an advantage for established banks. They already possess compliance departments, legal teams, and capital reserves. When participating in the MiCA licensing process, a cooperative bank does not need to build its compliance infrastructure from scratch, but simply apply its existing management capabilities to a new product portfolio. The cost of obtaining a MiCA license for a bank already operating under BaFin supervision (in banking, securities, and payment services) is significantly lower than for a cryptocurrency company – which would be forced to build an entirely new compliance process to meet MiCA standards.

The influx of cooperative banks also reflects a commercial opportunity that regional banks in Germany have recognized: serving individual customers who want access to cryptocurrencies within a legal framework through existing trusted banking relationships, rather than using specialized cryptocurrency exchanges. The cryptocurrency market for individual customers in Germany has developed in parallel with the MiCA legal framework. Established banks can meet this demand by offering MiCA-compliant custody and trading services, integrated directly into their existing retail banking product platforms; thereby, they have the potential to reach customer segments that specialized cryptocurrency platforms cannot effectively serve.

Assessment and Conclusion

The commercial value of Germany's 79 MiCA licenses is not limited to the domestic market thanks to the regulation's "passporting" mechanism. Once approved by the national competent authority, a cryptocurrency asset service provider (CASP) can leverage its "passporting" rights to offer regulated services in other regions of the bloc, after completing the mandatory notification process. Therefore, a German cooperative bank licensed by BaFin under the MiCA regulation can notify the regulatory authority in France, Spain, the Netherlands, or any other EU member state to begin offering MiCA-covered cryptocurrency asset services to clients in those jurisdictions — in some cases, this is even easier than for crypto-native companies that do not yet have operating licenses in any EU member state.

This "passport" aspect transforms Germany's overwhelming number of licenses into a market access advantage for every organization on the registration list, rather than simply a measure of participation within the German market's legal framework. German organizations holding MiCA licenses are well-positioned to compete in the EU single market for cryptocurrency services without needing to apply for separate licenses in each jurisdiction; this is a significant structural advantage given that the compliance costs of obtaining licenses in multiple jurisdictions are one of the main barriers to cross-border cryptocurrency service expansion in Europe.

Disclaimer: The content in this article is for informational, research, data analysis, and reference purposes only regarding the cryptocurrency market. All opinions, assessments, forecasts, or opinions reflect the author's perspective at the time of publication and do not constitute investment advice, solicitations for buying or selling, trading recommendations, advertising, marketing, or promotion of any financial products, services, or cryptocurrencies. Mentions of projects, tokens, protocols, exchanges, wallets, or cryptocurrency service providers (CASPs) are for research, analysis, or informational purposes only and should not be construed as endorsements, recommendations, or guarantees in any way. HCCVenture does not broker, advertise, market, promote, or connect users in Vietnam with any cryptocurrency services from CASPs. HCCVenture does not accept asset custody, investment mandates, manage assets, or execute transactions on behalf of clients. All investment decisions are made entirely through the reader's own research (DYOR), evaluation, and responsibility; HCCVenture is not liable for any losses or damages arising from the use of or reliance on the information presented in this article.

Compiled and analyzed by HCCVenture

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