When it comes to crypto regulations Germany, the country’s legal framework for digital assets is among the most detailed and enforced in Europe. Also known as German crypto law, it’s not just about taxes—it’s about licensing, security, and who gets to operate legally. If you’re trading, holding, or running a crypto business in Germany, you’re dealing with BaFin, Germany’s Federal Financial Supervisory Authority. This agency doesn’t just watch the market—it controls who can enter it. BaFin requires every crypto custodian, exchange, and service provider to get a license. No exceptions. And it’s not a formality: they check your IT security, anti-money laundering systems, and even your financial backing.
Starting in 2025, all of this gets even tighter under MiCAR, the EU’s Markets in Crypto-Assets Regulation. Also known as MiCA, this law forces every crypto business in Germany to follow the same rules as banks when it comes to transparency, reserve backing, and investor protection. That means if you’re offering tokens, running a DeFi platform, or even just storing crypto for others, you need to prove you’re not a fly-by-night operation. Germany is taking MiCAR seriously—some firms have already shut down because they couldn’t meet the new standards.
And then there’s crypto custody Germany, the rule that separates your crypto from the company’s money. Also known as asset segregation, this isn’t optional. If a German crypto platform goes under, your coins must still be safe, locked in cold storage, and legally separate from the company’s assets. That’s why only licensed custodians can offer wallet services here. Unlicensed ones? They’re illegal. This is why you’ll see so many posts about exchange shutdowns, fake airdrops, and unlicensed platforms disappearing. Germany doesn’t tolerate gray areas.
You’ll find posts here that dig into exactly how these rules play out in real life: from how MiCAR changes licensing deadlines for startups, to why BaFin shut down certain platforms, to how custody rules protect your wallet. There’s no fluff—just what you need to stay compliant, avoid scams, and understand what’s legal in Germany today.
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.
