How is crypto regulated in Germany?

Crypto regulation in Germany is a mix of EU law and German implementing law. The EU's MiCA regulation sets the rules for crypto service providers and stablecoin issuers, and Germany's Kryptomärkteaufsichtsgesetz (KMAG) makes the Federal Financial Supervisory Authority (BaFin) the authority that licenses and polices them. Whether individuals can own crypto is covered in is crypto legal in Germany; this guide focuses on the firms.

How do you get a BaFin crypto license under MiCA?

BaFin's guidance lists the services that need authorisation when offered commercially: custody, running a trading platform, exchanging crypto for money or other crypto, order execution, placing, receiving and passing on orders, advice, portfolio management and transfer services. A firm targeting German residents needs authorisation even without an office in Germany, with a narrow exception when a client approaches the firm on their own.

There are two routes:

• Authorisation. Specialist crypto firms apply to BaFin using the EU form, and must also document compliance with the EU's DORA cyber resilience rules.
• Notification. Banks and certain other licensed institutions can offer crypto services by notifying BaFin at least 40 working days before starting. The Bundesbank also receives these notices.

Authorised firms can passport across the EU. As of an August 2026 register update, Germany had 79 authorised providers, the most in the EU, after six more cooperative banks were added.

What happened to Germany's older crypto licences?

Germany required a banking-law licence for crypto custody from 2020. Firms holding German licences could keep operating under them until December 31, 2025 and use a fast-track process to move to MiCA. Across the EU, MiCA's grandfathering ended on July 1, 2026. Deloitte Legal notes that unauthorised crypto services are an administrative offence in Germany and individuals involved can face prosecution.

What are Germany's crypto money laundering and travel rules?

Crypto service providers are obliged entities under Germany's Money Laundering Act. They must run risk-based controls, check customers, keep records and report suspicious activity. Transfers to or from self-hosted wallets carry enhanced due diligence under Section 15a of the act.

Germany had its own travel rule ordinance from October 1, 2021. It expired on December 30, 2024, when the EU Transfer of Funds Regulation took over, requiring originator and beneficiary information to travel with crypto transfers. How this works generally is explained in what is the crypto travel rule.

How does BaFin regulate stablecoins?

MiCA's stablecoin rules for asset-referenced tokens and e-money tokens have applied since June 30, 2024, and BaFin authorises issuers based in Germany. The Ethena case showed how this works in practice. Ethena GmbH applied in July 2024 to issue USDe as an asset-referenced token, BaFin published a warning about deficiencies in March 2025, and the firm withdrew its application in April. In June 2025 BaFin ordered the business wound down, giving holders until August 6, 2025 to exchange tokens. The EU rulebook is explained in what is MiCA.

Rules differ by country and change often. Check the official regulator or a qualified professional for your own situation.