Why Bitpanda Applies for the MiCA License

Bitpanda has now announced its intention to become MiCA compliant. The Markets in Crypto-Assets (MiCA) Regulation is the EU framework for crypto regulation. It regulates what exactly crypto assets and services are and which authorization procedures are required to offer them. 

The regulation will come into force at the end of 2024 and beginning of 2025. Bitpanda wants to start the process immediately, because according to Philipp Bohrn, VP Compliance & Public Affairs, it can take several years between applying for and receiving a registration.

Until now, VASP registrations in Europe have not been transferable from one country to another, meaning that a company has to go through the review and inspection process again in every jurisdiction in order to be licensed as a crypto company and be able to operate legally.

“We believe in doing things the right way, not the easy way. That’s why Bitpanda has decided to proactively obtain all local cryptocurrency registrations and other financial licenses where offered. We also adhere to the AML5 anti-money laundering directive and have robust KYC onboarding and verification procedures.” Philipp Bohrn, VP Compliance & Public Affairs at Bitpanda.

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2024 all about MiCA

Under MiCA, operators of crypto trading platforms, other crypto exchange providers and custodians would have to obtain a license from their national supervisory authority – BaFin in Germany – before commencing business operations. In Germany, the obligation to obtain a license from BaFin for the operation of many crypto business models has long existed on the basis of national law because the German legislator has granted crypto assets the status of a financial instrument.

Obtaining the license early is interesting because it would allow Bitpanda (website) to offer all services in the European market from one country. According to Bohrn, the company is therefore closely monitoring regulatory developments and the discussions surrounding the implementation of MiCA in Germany.

Bitpanda, N26 and BitCapital become neighbors

In addition, the office in Berlin is now to be expanded. A FinTech hub directly behind the ALEXA shopping center in the new VoltAir building complex has been selected as the new workplace. N26 and BitCapital are already based here on 17,300 square meters.

The team in Berlin, currently around 40 people strong, is to be continuously expanded over the coming months. The expansion of the office in the capital is the first step. FinTech emphasizes the importance of the project as a commitment to Germany as a business location.

The majority of countries in the EU are dominated by non-European companies in the crypto sector – unfortunately, this is also the case in Germany, even though these competitors do not have a license in Germany. Next year, Bitpanda plans to expand the license family not only in the direction of the Mica licenses, but also to expand the investment firm license.”

A year ago, Bitpanda Asset Management, the German subsidiary of the fintech company, was the first European retail investment platform to receive a BaFin license for the custody and proprietary trading of cryptocurrencies.

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(Featured image by Sajad Nori via Unsplash)

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First published in IT Finanzmagazin. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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