Germany Passes Key Legislation to Fully Implement MiCAR

In Brief:

Germany's 'Financial Market Digitization Act' has been passed, enabling full implementation of MiCAR and other EU crypto regulations.

BaFin will oversee MiCAR licensing, with foreign firms already gaining access via licenses from other EU countries.

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Germany has officially passed the 'Financial Market Digitization Act', aligning the country with the EU's Markets in Crypto Assets Regulation (MiCAR). This legislation paves the way for the comprehensive adoption of EU crypto regulations by the end of the year.4

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The new law designates BaFin as the authority responsible for issuing MiCAR cryptocurrency licenses in Germany. However, delays in passing the legislative framework have meant that German companies were previously unable to secure MiCAR licenses. Meanwhile, foreign companies operating in the EU have had a competitive advantage, as they could enter the German market with MiCAR licenses issued elsewhere in the EU.

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The act also addresses broader EU financial regulations, including DORA (Digital Operational Resilience Act) and the Funds Transfer Regulation, further advancing Germany's role in the European digital finance ecosystem.

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This milestone positions Germany as a critical hub for the regulated expansion of crypto asset services in Europe.

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