Germany Deepens Lead in EU MiCA Crypto Licensing as Six More Banks Join Register

Germany has strengthened its position at the top of the European Union's cryptoasset licensing landscape after six additional banks were added to the EU's MiCA register, according to reporting by Cointelegraph and CryptoBriefing. The register is the bloc's public record of entities authorized to provide cryptoasset services across the EU's 27 member states under the Markets in Crypto-Assets Regulation (MiCA). Rolled out in phases from 2024, MiCA introduced a single authorization framework for cryptoasset service providers. Firms licensed in one member state can typically extend services across the bloc through "passporting," making the choice of home regulator a key strategic decision for banks and crypto companies. Germany's financial supervisor, BaFin, has been handling crypto licensing applications for years, well before MiCA was fully implemented. That earlier start appears to be translating into a larger German footprint as the EU-wide register continues to fill. The latest addition of six banks points to a broader move by German lenders to bring cryptoasset services in-house rather than relying on third-party partnerships. Banks included in the register generally seek permission to provide offerings such as custody, trading, and other crypto-related services directly to clients. Direct authorization can reduce dependence on external providers and give banks tighter control over compliance, client onboarding, and custody arrangements. Market participants use the MiCA register to verify whether a counterparty is properly authorized before doing business. Its steady expansion also signals rising institutional participation across the currency union. Germany's growing concentration of licensed banks could influence where cryptoasset firms base European operations, and where liquidity, custody infrastructure, and compliance expertise cluster as MiCA matures. Other EU member states have also issued MiCA licenses, though the reports did not provide comparative totals. The pace of new entries into the register is being watched as a gauge of how quickly banks and crypto firms are adjusting to the harmonized rulebook that is replacing the previous patchwork of national regimes. Market impact A larger roster of MiCA-authorized banks in Germany could further cement the country's role as a hub for institutional cryptoasset activity in the EU. Because BaFin-granted licenses can typically be passported across the bloc, German-licensed banks may increase competitive pressure on providers in other jurisdictions. For institutional investors and exchanges, a broader set of bank-operated crypto services could expand custody and settlement options backed by regulated lenders, supporting adoption among clients that prefer bank-grade compliance and oversight. FAQ What is the MiCA register? It is the EU's public list of firms authorized to provide cryptoasset services under MiCA, the regulation that harmonizes crypto rules across member states. Why does Germany lead the register? BaFin began processing crypto licensing applications before MiCA fully took effect, giving German institutions a head start. What does MiCA authorization allow banks to do? Authorized banks can offer services such as custody and trading directly to clients, and can generally provide them across the EU via passporting. Does this affect crypto firms outside Germany? It can intensify competition, as German-licensed banks may serve clients throughout the EU and potentially influence where infrastructure and liquidity concentrate. Originally reported by AltcoinGordon, written by Liam Carter. Republished with permission. View the original on AltcoinGordon →