Trade Republic has secured a full license from Germany's financial regulator (BaFIN) to offer crypto services.
Trade Republic's License from BaFIN
Trade Republic has become the latest company to be licensed under the MiCA regulation, allowing it to custody crypto assets, execute orders, and provide transfers on behalf of clients.
Progress in MiCA Licensing in Europe
With Trade Republic's authorization, 25 companies are now licensed under MiCA. The licensing process has been slow despite MiCA going into full force in December 2024.
Impact of MiCA on the European Crypto Sector
Concerns exist that the regulatory approach may negatively affect the attraction of crypto enterprises. For instance, Tether has opted against obtaining a MiCA license for its USDT, impacting MiCA-compliant platforms.
The receipt of Trade Republic's license marks a significant step in regulating crypto assets in Europe and reflects broader efforts by companies to meet new standards.
