Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the BaFin decision, including banking and payment rails.
Get a crypto license in Germany.
The EU's largest economy now licenses crypto under MiCA, supervised by BaFin under the KMAG. The transitional period is over - authorisation is the only way in, and a BaFin stamp is worth the file it takes. We build that file end to end.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Crypto licenses obtainedlicenses obtained
Updated
Germany in brief
The EU's largest market, under its most respected regulator.
Germany implemented MiCA through the Kryptomärkteaufsichtsgesetz (KMAG), which replaced the old KWG crypto rules and made BaFin the single competent authority for crypto-asset service providers. The national transitional window closed at the end of 2025 - firms that once relied on KWG crypto custody licences or grandfathering have either converted to CASP authorisation or left the market. What remains is a clean, fully licensed landscape in the EU's largest economy: 84 million consumers, Frankfurt's institutional depth, and banks that were allowed to custody crypto earlier than almost anywhere else.
BaFin reviews are document-heavy and thorough - this is not the fastest desk in the EU, and that is precisely the value: a BaFin authorisation is read by banks, institutional partners and other regulators as the strongest CASP stamp in Europe. Beyond MiCA, Germany keeps a specialty nobody else has at this scale: crypto securities registrars under the eWpG, the licence behind tokenised bonds and funds. We build files for both.
The EU's largest economy licenses crypto under MiCA and the KMAG, with BaFin as single authority. The transition ended 31 Dec 2025 - authorisation is the only way in.
BaFin is document-heavy and worth it: the benchmark CASP stamp in Europe, plus the eWpG tokenised-securities specialty nobody else has at scale.
Licence classes
One authorisation, scoped to your services.
MiCA defines ten crypto-asset services in three capital classes. BaFin authorises the exact scope you apply for, and the scope drives capital, systems and the depth of the file. We fix the perimeter first, then build once.
Ten MiCA services in three capital classes. BaFin authorises the exact scope you apply for.
01 - CASP · CLASS 1-2
Core crypto services
For brokers, exchangers and custodians. Execution, exchange and safekeeping of client crypto-assets under one BaFin authorisation. Minimum capital €50,000-€125,000 depending on scope.
For brokers, exchangers and custodians. Execution, exchange and safekeeping of client crypto-assets under one BaFin authorisation. Minimum capital €50,000-€125,000 depending on scope.
- ✓Exchange of crypto ↔ fiat and crypto ↔ crypto
- ✓Execution, reception and transmission of orders
- ✓Custody and administration of client crypto-assets
- ✓Transfer services for crypto-assets
- ✓Advice and portfolio management on crypto-assets
- ✓Placing of crypto-assets
02 - CASP · CLASS 3
EU's largest marketTrading platform
The highest MiCA tier. Operation of a crypto trading venue with €150,000 minimum capital, listing rules and market-abuse controls, passportable across the EU from its largest economy.
The highest MiCA tier. A trading venue with €150,000 capital, passportable from the EU's largest economy.
- ✓Operation of a crypto-asset trading platform
- ✓Matching of buyers and sellers in the venue
- ✓Admission-to-trading (listing) framework
- ✓Market-abuse monitoring under MiCA Title VI
- ✓Combines with custody and exchange services
- ✓One home regulator - BaFin - for all 27 states
Costs and timelines are confirmed for your case before any work begins. BaFin charges statutory fees by scope; the real investment is the file. Capital, substance and documentation are scoped individually in your quote. eWpG crypto-securities registrar mandates are quoted separately.
Why Germany
The stamp that outranks every other CASP stamp.
The framework rests on MiCA and the KMAG, supervised by BaFin, and on a market that institutional counterparties cannot ignore.
✓
The EU's largest economy
84 million consumers, the deepest institutional market in Europe and an EU passport that starts from the bloc's centre of gravity. The licence covers all 27 states from Germany outward.84M consumers; the passport starts from the centre.
✓
BaFin's stamp means the most
Document-heavy, demanding, worth it. Banks, custodians and enterprise partners treat a BaFin authorisation as the benchmark CASP approval in Europe. Doors open that lighter stamps do not touch.The benchmark approval. Banks treat it as such.
✓
A clean, single-authority regime
The KMAG made BaFin the one competent authority and closed the transitional window at the end of 2025 - no parallel registers, no grey zone, one rulebook, fully in force.KMAG + BaFin, transition closed, one rulebook.
✓
eWpG - beyond MiCA
Germany licenses crypto securities registrars under the eWpG. The infrastructure behind tokenised bonds and funds. If your roadmap includes tokenised securities, only Germany offers this at scale.Tokenised securities registrars. Only in Germany.
✓
Crypto-native banking heritage
German law let banks custody crypto before almost anyone else, and Frankfurt's institutions built real desks. Licensed CASPs find counterparties here, not closed doors.Banks custody crypto here; counterparties exist.
✓
1-year rule still standing
Private investors still pay 0% on crypto held over a year. The reform debate continues, but nothing is enacted for 2026 and any change would bite from 2027 at the earliest. Founders relocate here for a reason.Private crypto held >1 yr: 0% in 2026.
How it compares
How Germany differs from other routes.
Germany is not the fastest MiCA desk. It is the heaviest stamp. The real comparison is positioning: fast desks get you operating; BaFin gets you institutional.
Germany vs other jurisdictions
| Feature |  Germany | Other jurisdictions |
|---|---|---|
| Regulatory regime | MiCA CASP under the KMAG | National regimes or lighter desks |
| Home market | The EU's largest economy | Smaller home markets |
| Licensing speed | 6-10 months, document-heavy | 4-6 months at fast desks |
| Weight of the stamp | The EU benchmark | Varies - often needs explaining |
Regulatory regime
GermanyMiCA CASP under the KMAG
Other jurisdictionsNational regimes or lighter desks
Home market
GermanyThe EU's largest economy
Other jurisdictionsSmaller home markets
Licensing speed
Germany6-10 months, document-heavy
Other jurisdictions4-6 months at fast desks
Weight of the stamp
GermanyThe EU benchmark
Other jurisdictionsVaries - often needs explaining
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Germany | MiCA CASP (BaFin) | ~30% effective · 0% private after 1 yr | Thorough, document-heavy |
 Czech Republic | MiCA CASP (ČNB) | 21% CIT | Fast, technical, predictable |
 Lithuania | MiCA CASP (Bank of Lithuania) | 17% CIT (2026) | Fast, but strict AML practice |
 Switzerland | FINMA licences · SRO route | ~12-14% cantonal | Fast entry, no EU passport |
GermanyLicense typeMiCA CASP (BaFin)
Taxation~30% effective · 0% private after 1 yr
RequirementsThorough, document-heavy
Czech RepublicLicense typeMiCA CASP (ČNB)
Taxation21% CIT
RequirementsFast, technical, predictable
LithuaniaLicense typeMiCA CASP (Bank of Lithuania)
Taxation17% CIT (2026)
RequirementsFast, but strict AML practice
SwitzerlandLicense typeFINMA licences · SRO route
Taxation~12-14% cantonal
RequirementsFast entry, no EU passport
Before you apply
Requirements for the BaFin authorisation.Requirements for BaFin authorisation.
BaFin reviews a CASP file the way it reviews a bank application: completely. The checklist below is what a file that passes actually contains. Built to the KMAG, MiCA and the ESMA technical standards.
01
German entity. A GmbH or AG with its registered office and effective management in Germany.
02
Substance. Decision-making, compliance and at least part of operations genuinely in the country; letterbox setups fail.
03
Fit & proper management. At least two competent managing directors (Geschäftsleiter) with clean records and relevant experience.
04
Own funds - €50,000, €125,000 or €150,000 by service class, or one quarter of fixed overheads if higher.
05
Programme of operations. Services, target markets, volumes and a three-year business plan BaFin can interrogate.
06
AML/CFT framework. GwG-grade KYC, EDD, monitoring and reporting to the FIU, with a named AML officer.
07
ICT and DORA compliance. Resilience testing, incident reporting, register of ICT providers and exit plans.
08
Safeguarding of client assets. Segregation of client crypto and funds, custody policy and key-management design.
09
Governance. Clear ownership up to UBOs, disclosed qualifying holdings, conflicts and complaints procedures.
10
Wind-down plan. Credible, funded and documented.
11
White papers and disclosures where you issue or admit crypto-assets to trading.
01
German GmbH/AG with effective management in Germany.
02
Real substance. Compliance and decisions on the ground.
03
Two fit & proper managing directors.
04
Own funds €50k-€150k by class.
05
Programme of operations + 3-year plan.
06
GwG-grade AML with named officer.
07
ICT resilience under DORA.
08
Segregation and custody of client assets.
09
Ownership disclosed up to UBOs.
10
Credible, funded wind-down plan.
Reflects MiCA, the KMAG and BaFin administrative practice as of 2026. The German transitional window closed at the end of 2025. Operating without authorisation is a criminal offence under German law.MiCA + KMAG, BaFin practice as of 2026. Transition ended 31 Dec 2025.
How it works
From first call to the BaFin register.
01
Perimeter and strategy
We map your services to the MiCA classes and fix scope, capital and timeline in writing. Including whether eWpG belongs on your roadmap.MiCA classes, capital, eWpG. Fixed in writing.
02
German company and substance
GmbH formation, registered office, managing directors and the governance layer. The presence BaFin interviews behind.GmbH, office, directors. The presence behind the file.
03
The application file
Programme of operations, AML/CFT framework, ICT and DORA documentation, safeguarding and wind-down. Assembled to BaFin's standards.Programme, AML, DORA, wind-down - BaFin-grade.
04
BaFin review
25 working days to completeness, 40 more to assessment on the statutory clock - 6-10 months in practice. We answer every question round.25+40 wd statutory; 6-10 months in practice.
05
Authorisation and passport
Entry in BaFin's register, ESMA notification and passporting into all 27 EU states - plus ongoing reporting we can keep running.Register entry, then all 27 EU states.
Quick facts
RegulatorBaFin
FrameworkMiCA + KMAG
Capital€50k / €125k / €150k
Statutory clock25 + 40 working days
In practice6-10 months
Transition ended31 December 2025
SubstanceGerman office + 2 directors
PassportAll 27 EU states
The statutory clock starts when BaFin deems the file complete. Completeness quality is where timelines are actually won.
On the ground in Germany
Run from our Frankfurt office.
Prifinance - Germany
Frankfurt · Germany
Frankfurt, Germany
01
German company formation
GmbH incorporation, registered office and the corporate layer BaFin expects. Notarised, registered and structured for the application.GmbH, notarised and structured for the file.
02
The authorisation file
Programme of operations, AML pack, ICT/DORA documentation and capital planning. Drafted by us and defended through BaFin's question rounds.Programme, AML, DORA. Defended through review.
03
Directors and substance
Geschäftsleiter search, compliance staffing, office arrangements. The substance German law demands, assembled pragmatically.Geschäftsleiter search, staffing, office.
04
eWpG and special mandates
Crypto securities registrar projects, tokenised bond structures and combined CASP + eWpG roadmaps - scoped and delivered.Tokenised securities - scoped and delivered.
We also have offices in
Tallinn
Estonia
Roseni 13
Vilnius
Lithuania
Gedimino pr. 2
London
United Kingdom
7 Bell Yard
Dubai
UAE
33 Level, Al Saqr Business Tower
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Istanbul
Turkey
Perpa Ticaret Merkezi, A Blok
Good to know
Taxation of crypto companies in Germany.
No crypto-specific levies. Corporate profits carry Germany's ordinary burden of roughly 30%, while private investors keep one of Europe's most generous rules: crypto held over a year is tax-free, still intact in 2026.
~30% effective corporate rate
15% corporation tax plus the 5.5% solidarity surcharge and municipal trade tax of roughly 14-17%. Around 30-33% combined, varying by municipality. Ordinary deductions apply.15% CIT + soli + trade tax by municipality.
Private: 0% after one year
Crypto held over 12 months sells tax-free for private investors. Whether the gain is €500 or €500,000. Within a year, gains above the €1,000 exemption limit are taxed at your personal rate.Still intact in 2026; €1,000 limit within a year.
The reform that has not happened
Abolishing the 1-year rule was debated through 2026. A Green bill failed in May, and no government bill is enacted. Any change would apply from 2027 at the earliest; positions taken now stand on current law.Debated through 2026; earliest change 2027.
VAT-exempt exchange
Crypto ↔ fiat exchange is VAT-exempt as a financial service under the Hedqvist line. The 19% standard rate touches only ordinary supplies.Hedqvist line; 19% only on ordinary supplies.
BMF guidance in depth
The Federal Ministry of Finance publishes detailed crypto guidance. Staking, lending, airdrops and documentation standards are researchable positions, not guesswork.Staking, lending, airdrops - researchable.
DAC8 reporting from 2026
EU-wide crypto reporting applies from January 2026. CASPs report client transactions to tax authorities automatically. Compliance is built into your setup from day one.Automatic CASP reporting, EU-wide.
Tax summary
Corporation tax15% + 5.5% soli
Trade tax~14-17% municipal
Effective total~30-33%
Private, held > 1 yr0%
Private, under 1 yrpersonal rate · €1,000 free
VAT on crypto exchangeExempt
DAC8 reportingfrom 2026
*Figures as of 2026. Trade tax varies by municipality. Berlin, Frankfurt and Munich differ meaningfully; we model the location before you commit.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: German GmbH, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, BaFin-authorised business.
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Germany · BaFin
Launch your crypto project in Germany with expert support.
Full-service assistance - from GmbH registration to BaFin authorisation and ongoing compliance.
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Is Germany the right fit for your project?
Our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.
Written assessment within 2-5 business days
Request a free conclusion →FAQ
The German crypto licence - the questions we hear.
What licence does a crypto business need in Germany?+
CASP authorisation from BaFin under MiCA and the KMAG - required for exchange, brokerage, custody, transfer, advice and trading-platform services aimed at the German market. The old KWG crypto regime is closed; MiCA is the only route.
What happened to the old KWG crypto custody licences?+
The KMAG replaced the KWG crypto framework, and the German transitional window closed at the end of 2025. Firms with legacy licences either converted to CASP authorisation - many via BaFin's simplified procedure - or exited. Operating today without CASP authorisation is a criminal offence.
How much capital is required?+
MiCA's three classes: €50,000 for advice and order services, €125,000 for exchange, execution and custody, €150,000 for a trading platform - or a quarter of annual fixed overheads if that is higher.
How long does BaFin authorisation really take?+
The statutory clock is 25 working days to completeness plus 40 for assessment, but BaFin's completeness bar is the real timeline. Well-prepared files land in 6-10 months; thin files circle for years.
What substance does BaFin expect?+
A German GmbH with effective management in Germany: at least two fit-and-proper managing directors, a compliance function on the ground, a real office and systems that demonstrably run. Letterbox structures are rejected.
What is the eWpG licence and do I need it?+
The eWpG lets crypto securities registrars maintain tokenised securities - bonds and fund units - on distributed ledgers, a German specialty beyond MiCA. You need it only if your model includes tokenised securities infrastructure; we scope it in the first call.
Is the 1-year tax-free rule for private investors still alive?+
Yes. In 2026 crypto held over 12 months still sells tax-free for private individuals. Reform is debated - the finance minister has signalled change and a Green bill failed in May 2026, but nothing is enacted, and any change would apply from 2027 at the earliest.
How are crypto companies taxed?+
Roughly 30-33% all-in: 15% corporation tax, 5.5% solidarity surcharge and municipal trade tax of about 14-17%. Crypto-fiat exchange is VAT-exempt; DAC8 reporting applies from 2026.
Does the German licence passport across the EU?+
Yes - one BaFin authorisation covers all 27 EU member states through MiCA passporting after a simple notification, with no re-licensing. Many groups deliberately choose the heaviest home stamp for exactly this reason.
Why Germany rather than a faster MiCA desk?+
Speed versus weight. Lithuania or the Czech Republic authorise in 4-6 months; BaFin takes longer and its stamp opens institutional doors the fast desks cannot - German banks, enterprise clients and conservative counterparties. Many groups sequence: fast desk first, Germany as the flagship.
What licence is needed?+
BaFin CASP authorisation under MiCA/KMAG - the only route.
Old KWG licences?+
Regime closed end-2025; firms converted or exited.
Capital?+
€50k / €125k / €150k by service class.
How long?+
6-10 months in practice; completeness drives it.
Substance?+
GmbH, two directors, real office and compliance.
What is eWpG?+
Crypto securities registrar licence - tokenised bonds and funds.
1-year rule alive?+
Yes - 0% after 12 months in 2026; reform earliest 2027.
Company taxes?+
~30-33% all-in; VAT-exempt exchange.
EU passport?+
Yes - all 27 states by notification.
Why not a faster desk?+
BaFin's stamp opens institutional doors fast desks cannot.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
“As a software development crew at FewMoreTaps OÜ, we've had the pleasure of working with Prifinance on some key financial moves.First of all, navigating the world of corporate banking and finance can be a maze, but Prifinance made it feel like a walk in the park. They helped us set up a corporate bank account without the hassle of jumping on a plane or drowning in paperwork. Everything was done remotely, smoothly…”
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Get a free legal opinion on your project - our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.Free legal opinion: which German route fits your project and what it will cost.
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Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of BaFin or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.