Germany
Overview
Germany was an early mover: it introduced a crypto-custody licence under the Banking Act (KWG) in 2020 and the Electronic Securities Act (eWpG) for tokenised securities. MiCA now supplies the overarching CASP regime, implemented in Germany by the Crypto Markets Supervision Act (KMAG). BaFin is the competent authority; the Bundesbank is involved in prudential supervision.
Germany used the MiCA option to shorten the transitional window to 31 December 2025 (KMAG §50), six months earlier than the EU-wide 1 July 2026 deadline. The old KWG crypto-custody route is closed to new entrants; residual qualified crypto custody for crypto securities does not carry an EU passport.
Regulatory framework
MiCA (Regulation (EU) 2023/1114) is directly applicable. The KMAG designates BaFin as the CASP authority and the Bundesbank for prudential supervision, and carries the German transitional and enforcement rules. The eWpG governs tokenised securities and crypto securities registers; the KWG crypto-custody licence is now residual.
Third-country firms can use the MiCA Article 60 route only for services at the client’s own initiative; reverse solicitation is narrow. A German MiCA authorisation passports across the EEA after the Article 62 notification.
Licensing & authorisation
Route and clock. Apply to BaFin (MiCA Arts 62–63). The authority acknowledges within 5 working days, assesses completeness within 25 working days and decides within 40 working days of a complete file; the clock stops for information requests. BaFin’s published process gives applicants a four-week window to complete the file, and a missing file can be refused.
Charges. There is no fixed CASP tariff. BaFin charges on a time basis under the FinDAGebV fee regulation, and the fee is payable even if the application is withdrawn or rejected. Ask BaFin for the fee basis before filing.
Own funds. MiCA Art 67 and Annex IV set the minimum at €50,000 (Class 1), €125,000 (Class 2) or €150,000 (Class 3), plus one quarter of the previous year’s fixed overheads. The class follows the services authorised.
Substance and passport. MiCA Art 59 requires the registered office and head office in Germany. Plan for a German-law entity, German-resident management, a local AML officer and outsourcing/ICT arrangements that meet BaFin and DORA expectations. Once authorised, notify under Art 62 to passport into the EEA.
AML & Travel Rule
The EU Transfer of Funds Regulation (TFR, (EU) 2023/1113) has applied since 30 December 2024. CASP-to-CASP transfers must carry originator and beneficiary information from the first euro; transfers to or from self-hosted wallets above €1,000 require verification of the counterparty.
BaFin supervises AML/CFT under the German Money Laundering Act (GwG); the FIU receives suspicious transaction reports. DORA has applied since 17 January 2025, and the EU AML Regulation (AMLR) applies from 10 July 2027.
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