Germany leads the wave of approvals for crypto assets, with banks accelerating their efforts under t

Germany has issued the most licenses under the EU’s MiCA framework. The banking industry is the main player in this effort.

The number of licenses issued by German authorities under the MiCA regulations has surpassed that of other EU countries. Almost all of the licensed entities are banking institutions, and these institutions are actively trying to enter the regulated cryptocurrency market.

Meanwhile, Berlin has encountered resistance in its efforts to cancel the tax incentives for long-term cryptocurrency investors, forcing the government to delay the implementation of this policy.

Germany became the country with the most new licenses under MiCA in Europe, with banks playing a dominant role.

With the official implementation of the MiCA regulations in Europe, Germany has maintained its leading position in terms of new licenses issued. According to official statistics cited by local cryptocurrency media, Germany has issued more licenses than any other EU member country under current rules.

According to a report published by BTC Echo website on Wednesday, only in the third quarter, 42 institutions were approved. In total, only 72 institutions across Europe have been approved. This survey conducted by a digital asset management consulting and compliance company shows that Germany, as a major economic power and home to one of the largest cryptocurrency markets in Europe, accounts for more than half of all new licenses issued in the region.

The data used for analysis comes from the German Federal Financial Supervision Authority (BaFin) and the European Securities and Markets Authority (ESMA). It’s worth noting that all the newly licensed entities are banking institutions, including several cooperative banks. Deutsche Bank, a major bank and financial services company headquartered in Frankfurt, was also among these companies. Last month, Deutsche Bank received MiCA regulatory approval. According to FinPlanet’s CASP radar report for the third quarter of 2026, out of the total 100 registered cryptocurrency service providers (CASPs), 65 of them are banks. In the previous quarter, German regulators approved licenses for 58 such institutions. Additionally, another 120 institutions licensed in other EU countries will also be able to operate in Germany.

The issuance of MiCA licenses has been slower across Europe

The EU’s MiCA regulations were passed by the European Parliament in April 2023, and officially adopted by the Council in mid-May of the same year. This comprehensive framework for digital assets and operations came into effect on June 29, 2023, after being published in the Official Journal of the European Union.

However, it took three years for this law to fully take effect, including phases related to stablecoins, other asset-backed tokens, and cryptocurrency service providers (CASPs). The transition period during which member states could convert legislation into domestic laws and apply pan-European rules ended on July 1, 2026.

Starting from this date, all providers of cryptocurrency-related services within the European Economic Area (EEA), which includes non-EU countries such as Norway, Iceland, and Liechtenstein, must hold a MiCA license. Although the number of licensed entities increased to 363 during the period under investigation, the rate of new authorizations has significantly slowed down, dropping from 105 in the second quarter. Additionally, not all applications were approved by regulators. The case of Bitcoin.de is a typical example of this situation. As one of the oldest and largest cryptocurrency trading platforms in Germany and Europe, Bitcoin.de submitted an application to the regulatory authorities. However, its operator, futurum bank AG (part of the Bitcoin Group SE group), had its application rejected by BaFin. The future of this cryptocurrency trading platform, which serves over 1 million users, remains uncertain. Long-term cryptocurrency investment tax benefits have been extended, but the policy outlook is still unclear. Over the past few years, cryptocurrency investors in Germany have enjoyed various incentives, including tax exemptions on investments in digital assets held for more than one year. This year, there are signs that the Berlin federal government intends to eliminate these exemptions for long-term cryptocurrency investments. According to a report by Cryptopolitan in September, the Ministry of Finance is drafting a law that would impose a 25% capital gains tax on profits from cryptocurrency transactions, regardless of the holding period. However, good news for German cryptocurrency holders this week is that, due to public pressure and opposition from members of the ruling majority in the Bundestag, Chancellor Friedrich Merz’s coalition government has postponed this decision.