CASP licence in GermanyOverview
Germany regulated crypto custody and crypto-related financial services under the Banking Act (KWG) well before MiCA. The KMAG, published in the Federal Law Gazette on 27 December 2024, designates BaFin as competent authority and sets out the national framework around MiCA. Since 30 December 2024, providing crypto-asset services in Germany requires MiCA authorisation or a valid Article 60 notification.
Firms that held a German licence for crypto custody or other crypto financial services on 29 December 2024 could continue until 31 December 2025 at the latest while their MiCA application was pending, and could use the simplified procedure under Article 143(6) MiCA and section 50(3) KMAG. That window has closed. Firms with pending KWG applications for crypto services were required to switch to a MiCA application, unless they intend to conduct qualified crypto custody business, which remains a KWG activity linked to crypto securities.
Institutions already supervised by BaFin – credit institutions, investment firms, e-money institutions and certain fund managers – may provide equivalent crypto-asset services through the notification route under Article 60, filed at least 40 working days before launch. This explains why Germany's register has grown quickly, with cooperative and regional banks joining larger groups in offering crypto services.
New market entrants not yet supervised by BaFin apply for full authorisation under Articles 59 and 63 MiCA. BaFin is a demanding, process-driven supervisor; applications and correspondence are conducted in German, and a credible German operating presence with experienced management is expected.
Key benefits
- Authorisation from one of the EU's most respected financial supervisors
- Access to the largest economy in the EU and a deep institutional client base
- Single EU licence passportable to all Member States
- Strong credibility with banks, custodians and institutional investors
- Notification route for existing BaFin-regulated firms
- Clear interplay with German crypto securities rules for tokenised assets
Requirements
- German legal person with place of effective management in the EU and at least one EU-resident director
- Minimum capital or prudential safeguards per MiCA Article 67
- Experienced, reliable managing directors meeting BaFin's fit-and-proper standards
- Qualifying shareholder assessment, including source of funds
- Programme of operations and business plan with financial projections
- Robust governance, risk management, internal audit and compliance functions
- AML/CFT framework under the German Money Laundering Act, with Travel Rule compliance
- ICT and operational resilience framework under DORA
- Custody and segregation arrangements for Class 2 and Class 3 services
- Wind-down plan, complaints handling and conflicts-of-interest policies
Licence options & capital
Full CASP authorisation – Class 1
EUR 50,000 minimum capital
Order reception and transmission, execution, placing, transfer services, advice and portfolio management, for firms not yet supervised by BaFin.
Full CASP authorisation – Class 2
EUR 125,000 minimum capital
Adds custody and administration of crypto-assets and exchange of crypto-assets for funds or other crypto-assets.
Full CASP authorisation – Class 3
EUR 150,000 minimum capital
Adds operation of a crypto-asset trading platform; the higher of the fixed amount or one quarter of fixed overheads applies.
Article 60 notification
For credit institutions, investment firms, e-money institutions and certain fund managers already supervised by BaFin, covering services equivalent to their existing authorisation; filed at least 40 working days before launch.
Step-by-step process
- 1
Route selection
Determine whether full authorisation or Article 60 notification applies, and whether any activity falls under the KWG, such as qualified crypto custody.
- 2
German entity and management
Establish a GmbH or AG, appoint qualified managing directors and key function holders, and build local operations.
- 3
Application file
Prepare a German-language application meeting MiCA technical standards and BaFin's procedural requirements.
- 4
Filing with BaFin and the Bundesbank
Submit to BaFin with a copy to the responsible Bundesbank regional office; completeness is checked within 25 working days.
- 5
Assessment
BaFin assesses the complete file within 40 working days, with one possible suspension of up to 20 working days.
- 6
Authorisation and supervision
Begin services, establish regular reporting and audit cycles, and notify passporting where required.
Typical documents
- Articles of association and commercial register extract
- Programme of operations and business plan with projections
- Evidence of capital or prudential safeguards
- CVs, certificates of good conduct and fit-and-proper declarations for managing directors
- Qualifying holder documentation and source-of-funds evidence
- Organisational chart, governance and internal control framework
- AML/CFT risk analysis and procedures
- ICT strategy, security and outsourcing documentation
- Custody, segregation, wind-down and complaints policies
How Legal Wealth helps
Legal Wealth helps clients choose between full authorisation and the Article 60 route, and coordinates German-language applications prepared to BaFin's standards. We assist with management selection, governance and AML design, and with the interplay between MiCA and German crypto securities rules for tokenisation projects, always with discretion and with the shareholders' long-term structuring in view.
Enquire with Legal WealthFrequently asked questions
Can I still operate under an old German crypto custody licence?
Only for qualified crypto custody linked to crypto securities, which remains under the KWG. For MiCA crypto-asset services, the transitional period ended on 31 December 2025 and MiCA authorisation is now required.
What is the Article 60 route?
Credit institutions, investment firms, e-money institutions and certain fund managers supervised by BaFin may notify, rather than apply for, equivalent crypto-asset services. The notification must reach BaFin at least 40 working days before launch.
What does a BaFin application cost?
BaFin charges time-based fees for authorisation and notification procedures, and also charges where an application is withdrawn. The final amount depends on the complexity of the file.
Must documents be in German?
Yes. Applications and supervisory correspondence are conducted in German.
Can a German CASP serve the rest of the EU?
Yes. Once authorised, the firm notifies BaFin of the Member States it intends to serve and may passport its services under MiCA.
Last reviewed: 2026-10. Requirements, fees and timelines change. Information is general, reviewed on the date shown, and is not legal or tax advice.