Trade Republic Secures MiCA License Amid Regulatory Uncertainty Across Europe
Germany's BaFIN grants MiCA license to Trade Republic as crypto firms navigate slow EU rollout.
German fintech powerhouse Trade Republic has secured a crypto license under the EU’s Market in Crypto Assets (MiCA) framework, marking a significant regulatory milestone. The license, granted by Germany's Federal Financial Supervisory Authority (BaFIN), authorizes the firm to offer a full suite of crypto services across the 30 countries of the European Economic Area (EEA).
The approval allows Trade Republic to custody digital assets, execute and transmit crypto orders, and provide crypto transfers on behalf of clients. It also demonstrates Germany’s leading role in licensing under MiCA, as BaFIN has now approved nine of the 25 companies currently registered under the framework.
Patrick Hansen, Senior Director of EU Strategy and Policy at Circle, highlighted the move on social media, noting a growing race among neobanks, brokers, and even traditional institutions to secure licensing before the MiCA transition period ends in July 2026. "The race is on," Hansen remarked, reflecting the urgency felt across the fintech ecosystem.
Trade Republic’s expansion into Italy earlier this year and its €100 billion in assets under management illustrate its growing influence. Still, its reliance on external trading platforms for execution hints at a broader market fragmentation that MiCA may or may not resolve.
While 25 firms have achieved licensing so far—including major names like Circle, OKX, MoonPay, and BitGo—concerns are growing about the framework’s long-term impact. Critics argue that MiCA’s rigorous standards could marginalize smaller firms and startups, risking a brain drain or operational exodus to more lenient jurisdictions.
One notable absentee from the licensing list is Tether, issuer of the world’s largest stablecoin USDT. The company has publicly refused to pursue MiCA registration, citing overly stringent requirements. As a result, several compliant platforms in Europe have begun delisting USDT.
This cautious embrace of MiCA comes amidst a sharp contraction in venture funding for European crypto startups, which has plummeted by over 90% since its 2022 peak. Legal experts, like crypto attorney Ilja Nikiforov, forecast that up to 75% of currently registered crypto entities could lose their registration if unable to secure a license.
As the EU pushes for unified regulation to enhance consumer protections and market integrity, it risks losing its edge to jurisdictions like the U.S., Asia, or the Middle East—regions seen as more flexible toward crypto innovation. Yet for now, regulated players like Trade Republic are positioning themselves for long-term compliance and continental dominance.
