When operating a crypto business in Germany, BaFin licensing, the mandatory authorization process enforced by Germany’s Federal Financial Supervisory Authority. Also known as crypto custody license, it’s not just paperwork—it’s the gatekeeper for anyone handling digital assets on German soil. If you’re storing crypto for others, running a trading platform, or offering custody services, BaFin doesn’t just want to know about you—you need official approval, or you’re shut down.
This isn’t about bureaucracy for the sake of it. BaFin licensing ties directly to crypto custody Germany, the legal framework that forces firms to keep customer assets separate from their own funds. Think of it like a bank vault: your crypto must be locked away in secure, audited systems, not mixed into company wallets. And it’s not just about storage—MiCAR Germany, the EU’s new crypto market regulation that Germany fully enforces—adds layers for transparency, reporting, and investor protection. If you’re not compliant with MiCAR, you’re not compliant with BaFin.
Many startups think they can skip ahead, launch a DeFi app, and hope no one notices. But Germany doesn’t play that game. In 2025, unlicensed crypto custodians have been raided. Exchanges without proper authorization were blocked from operating. Even foreign platforms targeting German users got hit. BaFin doesn’t care if you’re based in Estonia or Singapore—if you serve German customers, you answer to them.
And it’s not just about big firms. Even small teams building wallet tools or tokenized asset platforms need to understand crypto licensing Germany, the full checklist of capital requirements, AML checks, and technical security standards. You need proof of financial stability, a clear business plan, and a clean record. No vague promises. No whitepapers. No YouTube influencers telling you it’s easy. BaFin asks for documents, audits, and real answers.
What you’ll find in the posts below isn’t theory—it’s real cases. We break down how crypto custody rules changed in 2025, what happened when a German startup got rejected by BaFin, why MiCAR is forcing even US-based firms to rethink their EU strategy, and how unlicensed exchanges in Berlin got shut down overnight. There’s no sugarcoating. If you’re serious about crypto in Germany, you need to know what BaFin expects. No exceptions. No loopholes. Just facts.
Germany's crypto exchange regulations are among the strictest in Europe. Learn how BaFin licensing, MiCAR rules, AML requirements, and tax reporting work in 2025-and what happens if you don't comply.
