BaFin, Germany’s financial regulator, has granted four licenses to Crypto Finance, a firm operated by leading stock exchange Deutsche Börse.
These licenses authorize Crypto Finance to conduct regulated digital asset trading, settlement, and custody services in Germany. The company is already regulated by the Swiss Financial Market Supervisory Authority (FINMA), as announced on Monday.
Stijn Vander Straeten, CEO of Crypto Finance Group, expressed excitement about the BaFin licensing, emphasizing that it underscores the company’s adherence to high standards.
Targeting institutional investors, Crypto Finance aims to bolster its position within the crypto ecosystem with these licenses.
Deutsche Börse acquired Crypto Finance in 2021, obtaining a majority stake. Since then, it has been offering its clients direct access to digital asset services, including post-trade services.
These licenses arrive amidst Europe’s preparation to implement the Markets in Crypto Assets (MiCA) directive. Signed into law in October 2023, MiCA aims to regulate the crypto market alongside laws to combat money laundering in crypto assets.
Eric Viohl, Crypto Finance’s MD, highlighted their commitment to covering the entire value chain and achieving significant milestones in Germany with highly regulated services.
In addition to the licensing news, Deutsche Börse is gearing up to launch a crypto exchange called DBDX, aimed at providing a trusted market infrastructure for the crypto space. This initiative aligns with Germany’s forthcoming crypto regulatory changes, and Deutsche Börse also plans to introduce a regulated stablecoin to facilitate digital asset trading.
Meanwhile, Börse Stuttgart, a smaller competitor, operates a retail-focused crypto exchange named ‘BSDEX’ along with institutional custody services.
