Bitpanda Becomes Latest Crypto Firm to Secure EU MiCA License

Austrian fintech unicorn Bitpanda has successfully secured a license under the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework, marking a significant step in its mission to operate across the EU.

Bitpanda Joins Regulated Crypto Landscape

In an announcement on January 27, Bitpanda revealed that it had received the MiCA license from Germany’s Federal Financial Supervisory Authority (BaFin), which allows the company to offer its services in all 27 EU member states under a unified regulatory regime.

This milestone comes at a pivotal moment for the crypto industry, with the MiCA regulations fully coming into effect on December 30, 2024. Bitpanda is only the second crypto asset service provider (CASP) to be granted BaFin’s MiCA license since the regulation began to roll out. The first was Boerse Stuttgart Digital Custody, which received its license earlier in January.

The Importance of MiCA’s Enforcement

While Bitpanda celebrates this achievement, CEO and co-founder Eric Demuth raised concerns about the enforcement of MiCA across the EU. In a recent interview, Demuth highlighted that while MiCA offers a solid regulatory framework, the real challenge lies in ensuring its consistent application.

“The real question is whether the EU will have both the resources and the determination to take action against those who disregard the regulation,” Demuth said. He expressed concern about foreign crypto service providers continuing to operate outside the regulatory scope, undermining the efforts of companies trying to comply with European laws. Without rigorous enforcement, Demuth warned that MiCA could become ineffective, leaving compliant firms in a disadvantaged position.

Looking to the US for Regulatory Inspiration

Demuth also expressed a desire for Europe to step up its regulatory efforts to match the global pace, particularly in comparison to the United States. He acknowledged that the US has been setting new standards for crypto regulation, positioning itself as a hub for the sector.

“The speed and determination with which the US is positioning itself as the global crypto hub are setting new benchmarks,” Demuth stated.