Trade Republic Approved by BaFin for Full MiCA Crypto License

Trade Republic, a German fintech company, has obtained a full MiCA license from BaFin, the Federal Financial Supervisory Authority. This license authorizes the company to handle digital assets throughout the 30-member European Economic Area.

Armed with this license, Trade Republic—managing assets worth over $100 billion—can now run its digital asset operations without intermediaries. From custody services to crypto transactions, everything is under its roof. That means:

• Lower costs,
• Quicker trade execution,
• Tighter control over service standards,
• No more dependency on third-party providers.

Alongside basic custody and asset management capabilities, users will also gain access to a single interface. However, it’s crucial to recognize that execution will remain the responsibility of external market makers, including Bankhaus Scheich and B2C2.

This development reinforces Germany’s standing as the primary issuer of MiCA licenses in the European Union. To date, BaFin has granted 9 of the initial 25 licenses across the EU—representing over one-third of all current authorizations. Although the MiCA regulation formally took effect in December 2024, application processing timelines remain significantly delayed.

Check this out: Dutch AFM Grants MiCA Licenses to 4 Digital Asset Firms

During the first hundred days, just 15 crypto service providers were added to the official register. By mid-May 2025, the total had grown to 25. Among them are leading names like Circle,, OKX, BitGo Europe, MoonPay, Hidden Road, Socios, and BitStaete. Regulators now face a critical challenge: accelerating the evaluation of outstanding applications before the transition period closes in July 2026.

Yet, regulation isn’t all upside. Behind the promise of compliance lies a harsh reality: legal fees and reporting costs are pricing out smaller players. Many crypto startups can’t keep up. By mid-2025, experts predict that up to 75% of crypto firms in Europe may lose their registration. Investor appetite is shrinking too—startup funding in the sector has dropped well below 2022’s peak levels.

Of interest: Is Europe Squeezing Out USDT? MiCA’s Impact on the Crypto Status Quo

Trade Republic’s license sets a precedent within the evolving financial landscape. Positive enforcement signals may encourage a wave of new license applications from neobanks, brokerage platforms, fintech companies, and banking institutions. Currently, MiCA represents the only structured pathway into the European crypto market.

In the near future, it will become clear whether the regulation can support the growing demand for digital assets—or whether it risks centralizing control among a few large entities, effectively limiting market openness and diversity.