Germany CASP License - File your Application in 2 Min

An Overview of Germany CASP License

Do you want to start a business in Crypto in Germany? Well, then you will have to obtain a Germany CASP license to ensure full compliance. This license allows crypto companies to operate legally across the EU under the new MICA regulations. While the MiCA Regulation (EU) 2023/1114 entered into force in Germany, establishing unified standards for all crypto asset service providers (CASP) in the EU.

Germany is one of the most crypto friendly yet highly regulated markets in the EU, thus making it itself as one of the leading destinations for cryptocurrency businesses in the European union. The Federal Financial Supervisory Authority (BaFin) is the competent authority who issue the Crypto License in Germany. Therefore, businesses operating or planning to provide crypto asset services must adhere to MiCA EU wide provisions. At Enterslice we have expert professionals with a thorough knowledge of German law and BaFin requirements, ensuring that your compliance efforts are efficient and effective.

Connect with our Enterslice team for obtaining MiCA crypto asset service provider license in Germany and to explore the potential of the EU crypto market.

What are the Requirements for a Crypto License in Germany?

Curious to Know the Benefits of the Germany CASP License?

The list of benefits of the Germany CASP License is as follows:

Enhanced Credibility and Investor Confidence

A CASP License in Germany under MiCA serves as official confirmation that a company comply with the strictest regulatory standards in Europe. This overall enhances the investor and client confidence and helps to build long-term partnerships.

Access to the EU Single Market

It provides access to the single European market. Further, the company can provide crypto services in all EU countries without the need for repeat licensing.

Regulatory Clarity and Legal Certainty

It creates a legal certainty for business, while clear rules in the AML or KYC sphere and the protection of client assets reduce regulatory risks and create a predictable basis for development.

Strong Reputation in Blockchain and Fintech Innovation

Germany is among the renowned EU leaders in implementing innovations in blockchain and fintech. Therefore, the company’s presence in this market strengthens its reputation as a reliable and technologically advanced player.

Robust Infrastructure and Business Growth Support

Crypto License in Germany enables a company to obtain support from a developed infrastructure, such as banks, legal advisors, and compliance providers. It helps businesses to simplify the launch and scaling of crypto projects. This way, the crypto license in Germany serves as a strategic tool for taking business to the next level.

Unified Access to the Entire EU

A BaFin license grants the right to offer crypto services, sell, and distribute them across the entire European Union without the need for additional authorization in other member states.

Legal Clarity

The MiCA regulation and Germany’s national legislation, including the German Banking Act, clearly define the legal framework for Cryptocurrency activities.

Tax Benefits

The country also offers a favourable tax regime, such as capital gains on assets held for more than one year are taxed at a flat rate of 25%. It is one of the merits of Germany CASP license.

Reliability and Transparency

Compliance with AML/CFT (anti-money laundering and counter terrorism financing) standards enhances trust from clients, partners and investors. It is one of the substantial benefits of Germany CASP license.

What is the Process of Securing a Germany CASP License?

The step-by-step process of the Germany CASP license is as follows:

What are the Essential Documents for the CASP License in Germany under MiCA?

The list of documents required for the CASP license in Germany under MiCA is as follows:

Types of Activities Covered by Crypto License in Germany

The different types of activities covered by the Crypto License in Germany are as follows:

• Custody and Administration of Crypto Assets :- Providing custodial services, including secure wallet management and storage of private keys.
• Operation of Trading Platforms :- Establishing and operating cryptocurrency exchanges or platforms for trading virtual currencies.
• Exchange Services :- Conducting currency exchange operations involving conversion between fiat currencies and cryptocurrencies, as well as exchanges between different crypto assets on licensed platforms.
• Execution of Client Orders :- Offering brokerage services by executing cryptocurrency transactions on behalf of clients.
• Placement of Crypto Assets :- Promoting and distributing crypto tokens, including Initial Coin Offerings (ICOs) and Security Token Offerings (STOs).
• Reception and Transmission of Orders :- Receiving and transmitting client instructions to buy or sell virtual currencies.
• Investment Advice on Crypto Assets :- Providing investment recommendations and advisory services related to virtual assets or tokens.
• Portfolio Management :- Managing client investment portfolios that include cryptocurrencies and other virtual assets.

Key Facts About Obtaining Germany CASP License

Some of the key facts about obtaining Germany CASP License are as follows:

• BaFin (Federal Financial Supervisory Authority) is the concerned regulatory board to issue the CASP license.
• MiCA (Regulation (EU) 2023/1114), the German Banking Act, is the regulatory framework
• The applicant should be a legal entity registered in Germany or the EU.
• The initial capital requirement is EUR 125,000 for the custody license and EUR 150,000 for the cryptocurrency securities license.
• The review time for the CASP license is up to 3 months (25 working days for confirmation + 60 for review).
• The license application should be in electronic form only as per Article 62 of MiCA.
• All the documentation should be in German
• Some of the primary requirements are a business plan, IT infrastructure, AML/CFT, shareholder disclosure, and management qualifications.
• Taxes include 15.83% corporate tax, 25% capital gains tax if held >1 year), VAT – selectively applied.
• Tax registration should be obtained within one month after commercial registration.
• The fees for registration and annual supervisory depend upon the type of service and business size.
• Germany CASP license also provides an EU market access via passporting under MiCA.
• The applicant for CASP license also needs to maintain transparency, mandatory reporting and support innovation.

What are the Post Germany CASP License Obligations?

The list of post Germany CASP license obligations is as follows:

• Reporting and BaFin Oversight: Companies must make continuous disclosures, including financial statements, internal control data, and information on clients and transactions. BaFin may also request additional documents or explanations at any time.
• Protection of Client Assets: Applicant companies must segregate client funds from company funds. Client assets must be held separately to ensure their return in the event of insolvency, as mandated under German banking law.
• Compliance and IT Security: Companies must regularly update AML/KYC policies, adapt risk management systems, maintain high cybersecurity standards, and train staff on evolving regulatory requirements.
• Audit of Cryptocurrency Companies: Medium and large companies are subject to mandatory audits, while small enterprises may be exempt. Companies dealing with foreign counterparties must disclose all transactions in detailed form.
• MiCA and National Norms: Crypto asset transfers must comply with the Travel Rule, including disclosure of additional information on tokens and clients. MiCA requirements are supplemented by national laws such as FinMADiG and KMAG, which define specific compliance procedures.

CASP License in Germany under MiCA: Key Points of Regulation 2026

The key points of Regulation 2026 pertaining to CASP license in Germany under MiCA are as follows:

• BaFin remains the competent authority, but operates under MiCA standards.
• A transitional period has been introduced where old licenses are valid on a limited basis until a CASP application is submitted.
• Updated AML/KYC procedures are required as per MiCA and TFR.
• Requirements for IT security and the protection of client assets have been strengthened.
• Segregation of clients' funds and company funds is enshrined in law and remains a basic principle.

Taxation of MiCA Crypto Asset Service Provider License in Germany

The taxation of the MiCA crypto asset service provider license in Germany is as follows:

• The corporate tax rate in Germany is 15.83% for entities registered as companies.  
• Capital Gains Tax is about 25% to the sale of cryptocurrency held for more than one year.
• Though BTC and other virtual currencies are exempt from VAT, there are certain types of tokens that may be subject to taxation depending on their function and classification.
• All the transactions related to cryptocurrency are subject to mandatory reporting, especially when involving offshore or dissolved structures. Additionally, the company must register as a taxpayer within one month after completing commercial registration.

Why Trust Enterslice for CASP License in Germany under MiCA?

With 10+ years of experience, Enterslice delivers specialized expertise in crypto, fintech, and regulatory licensing across global markets. We streamline the process of obtaining a CASP License in Germany under MiCA, ensuring complete compliance with BaFin and EU regulatory standards. Here’s why Enterslice is the trusted partner for crypto businesses:

FAQs on CASP License in Germany under MiCA