Trade Republic Secures Full MiCA License, Expands Crypto Services Across Europe

Trade Republic, a prominent European fintech, has secured a full MiCA license from Germany’s financial regulator, BaFin. This license enables the company to offer crypto custody services to its extensive customer base of four million users across 17 markets. The Markets in Crypto Assets (MiCA) license allows Trade Republic to execute or transmit client orders and provide transfer services, effectively enabling the company to operate its entire crypto offering in-house across all 30 European Economic Area (EEA) states.

Germany has emerged as a leader in the European crypto space, granting a full MiCA license to nine crypto asset service providers (CASP). This represents 36% of all EU-wide CASP licenses, highlighting the country's proactive approach to regulating the crypto industry. The approval from BaFin comes at a time when Luxembourg’s financial regulator has also granted a MiCA license to Bitstamp crypto exchange, indicating a broader trend of regulatory acceptance and support for the crypto sector.

The significance of this license for Trade Republic cannot be overstated. It allows the company to expand its services and solidify its position as a key player in the European fintech landscape. The license also underscores the growing importance of regulatory compliance in the crypto industry, as companies race to secure licenses before transition periods end. According to Circle executive Patrick Hansen, the move is evidence of how CASPs and fintechs in the region are already making efforts to secure a license before the transition period ends.

The regulatory landscape for crypto assets in Europe is evolving rapidly. In April, a crypto lawyer predicted that up to 75% of Europe’s registered crypto companies (VASPs) will lose their status if they fail to get a MiCA license in time, which is by mid-2025. This has spurred a flurry of activity among industry players, with key players such as Circle, OKX, BitGo Europe, and MoonPay already obtaining licenses. However, global crypto players like Binance, Kraken, and Tether are not yet listed in the EU region, although most of them have started the application process.

The race to secure MiCA licenses is driven by the need for passporting of services across the 30 EEA countries. Without a MiCA license, companies cannot offer their services across the region, making regulatory compliance a critical factor for market access. This has led to a competitive environment where neobanks, brokers, other fintechs, and even traditional banks are all moving quickly to secure their MiCA licenses.