Crypto licensing in Germany runs through MiCA, the EU's Markets in Crypto-Assets Regulation (Regulation (EU) 2023/1114), supervised nationally by BaFin. A German CASP authorisation lets a business provide crypto-asset services and passport them across the EEA. Own-funds start at €50,000, €125,000 or €150,000 depending on the service class (MiCA Art. 67), and BaFin must reach a reasoned decision within 40 working days of a complete application (Art. 63). OBOLUS runs the path end-to-end on a fixed fee, plus government charges at cost.
What the law says now
Germany applies MiCA directly; there is no separate German crypto statute layered on top, though BaFin administers the regime and national transitional rules. The authorisation you need is a CASP authorisation, scoped to the specific services you provide — operating a trading platform, exchanging crypto for funds or other crypto, custody and administration, execution, placing, reception and transmission of orders, advice, or portfolio management.
Capital is set by service class under MiCA Art. 67: Class 1 €50,000, Class 2 €125,000 and Class 3 €150,000, with a floor of at least one quarter of the prior year's fixed overheads. The grandfathering window for firms that operated under the old national regime runs to a hard deadline of 1 July 2026 (Art. 143(3)); after that, an authorisation is required to continue. DORA, the EU's digital operational resilience regime, has applied since 17 January 2025 and sits alongside MiCA.
How the authorisation works in practice
The German process is dossier-heavy and front-loaded.
- Scope the services. Define the CASP services precisely; this fixes the capital class and the conduct rules that apply.
- Build substance. A German legal entity, qualified management subject to fit-and-proper assessment, and resourced compliance and risk functions.
- Assemble the dossier. Programme of operations, governance, AML/CFT framework, custody and IT controls, and a financial plan evidencing own-funds against the Art. 67 class.
- File with BaFin. BaFin checks completeness within 25 working days and issues a reasoned decision within 40 working days of a complete application (Art. 63); requests for further information pause the clock.
- Passport. Once authorised, notify to provide services into other EEA states without a fresh licence in each.
Capital, fees and timeline at a glance
| Item | Position (as at registry date) |
|---|---|
| Regulator | BaFin (MiCA / Regulation (EU) 2023/1114) |
| Authorisation | CASP authorisation, service-scoped |
| Own-funds | €50,000 / €125,000 / €150,000 (Class 1/2/3, Art. 67); floor ≥ ¼ of prior-year fixed overheads |
| Statutory timeline | Reasoned decision ≤40 working days from a complete application (Art. 63) |
| Grandfathering | Hard deadline 1 July 2026 (Art. 143(3)) |
| Operational resilience | DORA applies from 17 January 2025 |
| Government fees | Confirm current BaFin figures with counsel |
Risks and forks
- Passporting base, not just licence. Because a CASP authorisation passports, the choice of EEA member state is strategic — Germany's depth and credibility against the speed of a smaller member state. Compare in the Jurisdiction Navigator.
- Grandfathering complacency. Firms relying on transitional permissions must be authorised by 1 July 2026; the application takes months, so the runway is shorter than it looks.
- Underscoped capital. The own-funds floor is the higher of the class amount and a quarter of fixed overheads — fast-growing firms can breach it without planning.
Substance and personnel
BaFin expects a real operation in Germany, not a nameplate. That means a German legal entity, management resident and active enough to direct the business, and control functions — compliance, risk and a money-laundering reporting officer — that are genuinely resourced. Senior managers and qualifying shareholders go through fit-and-proper assessment covering experience, reputation and financial soundness. Custody and trading-platform services raise the bar further, because the regulator scrutinises how client assets are segregated and how operational and cyber risk are managed under DORA.
Underestimating substance is the most common reason a German application stalls. A polished dossier that proposes to run critical functions from outside Germany, or with a compliance function that exists only on the organisation chart, tends to attract questions that reset the timeline. We build the substance into the plan from the start so the application reflects how the business will actually operate.
Banking and the EEA passport
A German CASP authorisation is valuable precisely because it passports across the EEA — but that value is only realised if the firm can bank. We line up banking and EMI relationships alongside the application, because a licence without a payment rail is half a business. German and EEA banks look for exactly what BaFin looks for: real substance, a credible compliance story and clean ownership. Once authorised, you notify host states to provide services across the EEA without a fresh licence in each — turning one German authorisation into pan-European reach.
What to do next
Decide whether Germany is your EEA base or whether another MiCA member state fits better, then licence to the services you will actually run. We will map the class, capital and timeline and quote a fixed fee for the BaFin path — part of our licensing practice.
FAQ
How much capital does a German CASP need?
€50,000, €125,000 or €150,000 depending on the service class under MiCA Art. 67, with a floor of at least one quarter of the prior year's fixed overheads.
Does a German licence work across the EU?
Yes. A CASP authorisation can be passported across the EEA by notification, so you do not need a separate licence in each member state.
How long does BaFin take?
Statutorily, a reasoned decision within 40 working days of a complete application (Art. 63), after a completeness check within 25 working days. In practice, preparation and information requests make the real timeline longer — confirm with counsel.
Tell us which services you plan to run and we will map your German MiCA options in about 30 minutes. The first call is free and under NDA.