Proposed Regulation by the Commission on a Regulation for a Specific Sector
In a significant move towards regulating the cryptocurrency market, the Markets in Crypto Assets (MiCA) regulation was decided in 2023 and came into effect in some areas in 2024. This EU-wide legislation has created a unified legal framework, standardising the regulation of digital assets and strengthening the legal certainty and acceptance of Decentralised Finance (DeFi).
MiCA has brought about new requirements for DeFi transactions, necessitating users to provide an overview of transactions and evaluate their holdings based on daily market prices. This regulation is expected to foster the integration of Real-World Assets, improve scalability, liquidity, and compliance, benefiting both institutional and private market participants and legitimising and expanding the DeFi sector.
Germany, in particular, is keen to take the leading role in the regulation of the crypto market. More than 90% of providers operating in Germany have reviewed their processes and created compliance structures in accordance with the MiCA regulation. This proactive approach is expected to enhance the legal and financial security of the crypto market in the country.
The rules for crypto service providers under MiCA came into effect in December 2024. Over 80% of exchanges have tightened their Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures, and stablecoin issuers are required to prove their full reserves. The Federal Ministry of Finance has differentiated between active and passive staking.
Cryptocurrency online casinos may offer their services in Germany if they have a license from an EU-recognised gambling authority. Banks can now offer regulated crypto products across the EU, thanks to European passporting and MiCA. E-Money Tokens (EMTs), Stablecoins, and Asset Referenced Tokens (ARTs) have been subject to MiCA regulation since mid-2024.
The term "crypto-asset" is legally clearly defined since March 2025. Significant progress is visible in the area of anti-money laundering due to MiCA regulation. Banks have fewer problems implementing MiCA requirements compared to crypto startups due to their established compliance departments and regulatory experience.
Germany had a law called the Crypto Markets Supervision Act, which allowed certain MiCA provisions to be integrated into the existing national legal framework. By the end of 2025, crypto service providers in Germany must have completed full MiCA licensing.
Interestingly, more than 10% of Germans have already invested in Bitcoin and other cryptocurrencies, and a quarter is considering purchasing them, with the age group of 30 to 49-year-olds being particularly open to this. A quarter of Germans can imagine investing in cryptocurrencies.
The MiCA regulation is not just about regulation; it's about creating opportunities. Uniform rules under MiCA create new opportunities for the crypto market, paving the way for a more secure and accepted digital financial ecosystem.
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