Austrian Crypto Unicorn Bitpanda Secures MiCA License in Germany
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Loading... - Aiden Connolly
- 05 Feb 2025
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Austrian fintech unicorn Bitpanda has achieved a significant milestone by obtaining a license under the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. The license was granted by Germany’s Federal Financial Supervisory Authority (BaFin) on January 23, 2025, allowing Bitpanda to operate across all 27 EU member states under a unified regulatory regime.
Bitpanda is now the second cryptocurrency asset service provider (CASP) to receive BaFin’s MiCA license since the regulation came into full effect on December 30, 2024. This development underscores the growing importance of regulatory compliance in the rapidly evolving cryptocurrency landscape.
In a statement shared with Cointelegraph, Bitpanda CEO Eric Demuth emphasized the critical need for consistent and robust enforcement of the MiCA framework to ensure its effectiveness. He expressed concerns about foreign CASPs that continue to operate without adhering to regulations, likening the situation to a "Wild West" environment. Demuth stated, “Without consistent and robust enforcement, this legislative milestone risks being ineffective and puts those who actually try hard to comply with European regulation in a significantly worse competitive position.”
Demuth also called on European lawmakers to take cues from the United States regarding crypto regulation. He noted that the US is rapidly positioning itself as a global crypto hub, setting benchmarks that the EU must strive to meet. “The speed and determination with which the US is positioning itself as the global crypto hub are setting new benchmarks,” he remarked, warning that the EU may struggle to maintain its competitive edge in the sector if it does not adapt.
He further pointed out that regulation should not hinder growth, stating, “Regulation is never a factor that accelerates growth.” Demuth highlighted the need for the EU to recognize that the internet transcends national borders and to adopt a similar approach to regulation as the US, which treats any company with American customers as subject to its regulatory measures.
Bitpanda's achievement follows closely behind Boerse Stuttgart Digital Custody, which received BaFin’s MiCA license on January 17, 2025. Boerse Stuttgart Digital Custody is a subsidiary of Boerse Stuttgart Group, one of Europe’s largest exchange groups. The granting of these licenses marks a significant step in the EU's efforts to create a comprehensive regulatory framework for the cryptocurrency industry, aiming to enhance consumer protection and foster innovation within the sector.
As the cryptocurrency landscape continues to evolve, the successful implementation and enforcement of MiCA will be crucial for ensuring a balanced and competitive market in Europe.
