Crypto License in Germany

Is Germany the Right Fit

May Fit
You plan to exchange or safeguard customers’ crypto assets, or operate a trading platform, with genuine German operations

Needs Review
Your business combines crypto services with payments, e-money tokens (EMTs) or tokenized investments

Different Perimeter
Issuing tokens and handling financial instruments require classification beyond a CASP application

Choose the Regulatory Route

Business or Activity	Legal Route	Authority	Output	Limitation
Crypto service applicant	Articles 59/63 authorization	BaFin	Approved services	Only authorized activities
Eligible financial institution	Article 60 notification before starting	BaFin	Category-limited service rights	Electronic money institutions: custody/transfer of their own EMTs only; payment institutions are not a category
Token issuance	Issuer rules	Depends on token category	Issuer obligations	CASP approval does not authorize issuance
Financial instruments	Markets in Financial Instruments Directive (MiFID II) rules	Depends on activity	Investment permission	Outside MiCAR’s crypto-service regime
Payment services	Payment-services rules	Depends on activity	Permission or authorized provider	CASP approval does not replace payment permission

Covered Crypto Asset Services

Custody and Administration
Hold and administer customers’ crypto assets

Trading Platform
Operate a venue where multiple buyers and sellers trade

Exchange for Funds
Exchange crypto for money or money for crypto

Exchange for Crypto Assets
Exchange one crypto asset for another

Execution
Buy or sell crypto on customers’ behalf

Placing
Market crypto assets for offerors; this does not authorize issuance

Reception and Transmission
Receive customers’ orders and forward them for execution

Advice
Give personalized recommendations

Portfolio Management
Manage crypto portfolios under clients’ mandates

Transfers
Transfer crypto between addresses with the required service permission

BaFin CASP Application Support

Gofaizen & Sherle supports your application by:

• Classifying activities and coordinating the corporate structure
• Preparing application documents, anti-money-laundering (AML) and governance materials
• Supporting information and communications technology (ICT) readiness
• Helping answer BaFin’s questions and correct documents

You provide accurate information and implement controls. BaFin decides which services you may provide. German counsel or partner tasks require agreement.

Scope and Cost Categories

Package	Deliverables	Exclusions	Professional Fee	Official Fees	Third Party Costs
Application support within agreed scope	Route assessment, corporate structuring coordination, application documents, responses to BaFin	BaFin’s decision, client implementation, additional services unless agreed	Quoted after assessment	Confirm current charges before filing	Banking, technology and operating providers charge separately

Prudential safeguards are resources the company must maintain to cover risks, rather than fees paid to the regulator.

Requirements and Client Inputs

Article 63 applicants need:

• A registered office where some services occur, effective management in the EU and at least one director resident in the EU.
• Suitable managers and governance.
• Safeguards equal to the higher of the service-class floor (€50,000, €125,000 with custody/exchange, €150,000 with a platform) and one-quarter of the preceding year’s fixed overheads (fixed operating expenses). New businesses use the first 12 months’ forecast.

Safeguards may combine qualifying own funds with appropriate insurance or a comparable guarantee. These resources need not all be share capital. Client assets cannot replace them.

Inputs for Assessment

To assess your plans, provide:

• Ownership, ultimate beneficial owners, managers and establishment
• Services, transaction flows, markets and technology
• Business plan and three-year forecasts
• Financial resources, AML/customer-identification procedures, ICT, outsourcing, safeguarding and complaints documents

Timeline and Dependencies

Preparation depends on your information and controls; banks and technology providers set their schedules.

• Article 63: acknowledgment within 5 working days of receipt; completeness check within 25 working days. Assessment takes 40 working days from a complete application; decision notification follows within 5 working days of the decision.
• A necessary-information request by assessment working day 20 may suspend assessment for up to 20 working days. Later requests add no suspension. Initial incompleteness has no universal 20-day remedy limit.
• Article 60: notify at least 40 working days before starting. BaFin checks completeness within 20 working days; a request for missing information can pause the 40-day period for up to 20 working days. Later requests add no pause. Incomplete notification prevents launch.
• Article 65: authorized cross-border services may start 15 calendar days after notification or earlier communication of forwarding.

Regulatory Framework

MiCAR Title V sets the EU CASP rules. Germany’s crypto-market supervision law (KMAG) governs national supervision.

The Digital Operational Resilience Act (DORA) addresses ICT risk; Germany’s Money Laundering Act (GwG) governs AML duties. The Transfer of Funds Regulation (TFR) requires information about senders and recipients.

Current Regulatory Status

Item	Status
CASP regime	MiCAR applies by service and route
German transition	MiCAR transition ended by December 31, 2025; German Banking Act (KWG) permission is not automatic MiCA authorization
Application standards	Regulation 2025/305 specifies information; 2025/306 provides forms/templates
Official registers	Check the entity, permitted services and withdrawal status in ESMA and national records

Ongoing Compliance

AML and Transfers
Identify customers and beneficial owners, monitor transactions, report suspicions and handle required TFR information

ICT Resilience
Manage ICT risks, report major incidents, test systems and oversee technology providers under DORA

Safeguarding
Keep company resources, client money and crypto assets distinct and protected

Governance and Records
Maintain governance and handle complaints free of charge; keep MiCAR records five years, or up to seven on timely authority request

Outsourcing
The CASP remains responsible for outsourced work

Service Controls
Apply relevant custody, trading, execution, suitability and transfer requirements

Unauthorized Activity Risk

Confirm service rights before launch. Under KMAG section 9, BaFin may order unauthorized activities to cease and be wound down.

Banking and Payment Readiness

Banks and payment providers decide independently whether to accept you.

They examine beneficial owners, funding sources, flows, markets, counterparties and risk. CASP authorization does not guarantee an account. Distinguish company funds, client fiat and crypto assets in your arrangements. Payment services need applicable permission or an authorized provider; not every crypto transfer is a payment service.

Tax and Financial Planning

For German limited companies (GmbH/AG) in 2026, corporate income tax is 15%, plus solidarity surcharge of 5.5% of that tax and municipal trade tax. Entity, municipality, activities, staff and cross-border flows affect tax planning.

Compare EU Jurisdictions

Choose where you can genuinely operate and manage the business under Article 59. MiCA provides common service and safeguard rules.

Jurisdiction	Regulator	Fit	Operational Burden	Passporting	Limitation
Germany	BaFin	German service operations	Governance and controls	Article 65	Approved services only
Netherlands	AFM/DNB	Dutch operating base	AFM filing; DNB prudential matters	Article 65	Roles depend on activity
France	AMF	French operating base	MiCA governance and controls	Article 65	Common EU requirements still apply
Spain	CNMV	Spanish service operations	Distinguish service/issuer responsibilities	Article 65	Banco de España supervises asset-referenced token (ART) and EMT issuers
Lithuania	Bank of Lithuania	Lithuanian operating base	National forms and annexes	Article 65	National rules still apply
Estonia	Finantsinspektsioon	Estonian operating base	Portal filing; application in Estonian	Article 65	Identify documents submitted in English

Passporting covers authorized services after notification. The home authority forwards information within 10 working days.