Crypto: Germany continues to strengthen its position as Europe’s leader in regulated cryptocurrency business. Six German cooperative banks have been added to the register of crypto-asset service providers under the European MiCA regulation. The country now has 79 authorized providers, more than double that of France. For the average customer, this development is important primarily because it demonstrates the gradual convergence of cryptocurrencies with the traditional banking sector.
Cryptocurrencies in Europe have long ceased to be just the domain of specialized exchanges and tech startups. Traditional financial institutions are showing increasing interest, and the latest data from Germany confirms this trend. The European Securities and Markets Authority ESMA added six German cooperative banks in its latest MiCA register update. This brings the total number of authorized crypto-asset service providers in the European Union to 331.
The new German additions are Raiffeisenbank Aidlingen, Ihre Volksbank, VR-Bank Mittelfranken Mitte, Volksbank Euskirchen, VR Bank Ried-Überwald, and Volksbank Backnang. Compared to the previous register update from August 12, these are precisely the six new entities.
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Germany significantly outpaces France and the Netherlands
Germany now has a total of 79 crypto service providers in the European register, designated by the acronym CASP, or Crypto-Asset Service Providers. France follows at a considerable distance with 35 providers, and the Netherlands with 29.
Germany’s lead has actually widened over the past few months. At the end of June, the country had 57 such entities and was already the European leader according to earlier ESMA data. In less than two months, their number has grown by another 22.
This is not merely a cosmetic change in European statistics. The fact that traditional regional banks are among the new providers suggests that services related to cryptocurrencies are gradually moving closer to traditional financial products.
For customers, in practice it could become increasingly common to access cryptocurrencies not only through specialized crypto exchanges, but also through institutions where they have, for example, a bank account or investment products. The MiCA authorization itself does not, of course, mean that each of these banks must immediately offer a wide range of cryptocurrency services. However, it shows that they are creating regulatory space for providing them.
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What does MiCA actually mean?
MiCA, or Markets in Crypto-Assets Regulation, is a unified European regulatory framework for the crypto-assets market. The regulation came into force in 2023, with its various parts being implemented gradually throughout 2024. Its goal is to create common rules for the cryptocurrency sector across the entire European Union.
The regulation covers, among other things, transparency, disclosure of information, provider authorization, and supervision. According to ESMA, the new system aims to contribute primarily to consumer protection, market integrity, and financial stability.
A cryptocurrency service provider doesn’t have to be just a traditional crypto exchange. The MiCA regulation itself covers, for example, custody of crypto-assets, operation of trading platforms, exchange of cryptocurrencies for money or other cryptocurrencies, execution of client orders, or certain advisory services.
European rules also allow certain already regulated financial institutions, including credit institutions, to provide selected cryptocurrency services under conditions set by MiCA. This helps explain why traditional banks are appearing among the newly authorized entities.
The European scope of the regulation is also important. A provider meeting MiCA requirements can, under established conditions, offer its services across the borders of its home member state. The unified European framework is thus gradually replacing the previous situation where cryptocurrency companies had to navigate a range of different national rules.
Why is Germany leading?
Germany’s significant lead may not be solely due to greater interest in cryptocurrencies among local firms. The German financial regulator BaFin already explained in June, according to Cointelegraph, that the high number of authorizations is partly related to the size of the German financial sector itself and the large number of credit institutions eligible to provide cryptocurrency services.
Germany also benefits from having addressed cryptocurrency service regulation before the advent of the unified MiCA European system. Some companies were therefore able to use simplified authorization procedures during the transition to the new regime. In other words, the German market didn’t start from scratch with the arrival of MiCA.
The integration of the new European regulation with established banks is perhaps the most interesting aspect of current developments. MiCA is designed to create an environment where regulated cryptocurrency companies can operate across a single European market. The European Commission also points out that the rules aim to address not only innovation support but also customer protection, fraud, market manipulation, and cyber risks.
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MiCA license is not a guarantee of safe investment
For the average investor, however, it’s important to distinguish between a regulated provider and the safety of the investment itself. The fact that a bank, exchange, or other company meets MiCA requirements does not mean that bitcoin, ethereum, or another cryptocurrency cannot lose value sharply.
Regulation focuses primarily on rules for provider operations, client protection, and transparency. The MiCA regulation, for example, establishes obligations regarding risk management, handling of client assets, complaint resolution, or disclosure requirements.
Crypto is becoming part of traditional finance
Current German figures thus indicate a broader change in the European cryptocurrency market. MiCA regulation is no longer just legislation being discussed in Brussels. It is gradually beginning to determine which companies can offer regulated cryptocurrency services in the European Union and under what conditions.
Germany, with 79 providers, has a significant lead over other countries for now. But even more significant than the country rankings is the composition of the new entities. The entry of another six cooperative banks into the register shows that the line between traditional banking and the world of crypto-assets continues to blur.
For European investors, this may mean a greater selection of regulated services in the coming years and increasingly frequent integration of cryptocurrencies with institutions they previously knew primarily from conventional banking. This won’t eliminate the riskiness of cryptocurrencies themselves. However, under the supervision of European regulators, their infrastructure is increasingly moving into the financial mainstream.
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