Bitpanda Free To Operate In 27 EU Member States With MiCa License

In a win for the global crypto community, Bitpanda, an Austrian fintech unicorn, received its MiCA license on 27 January 2025. MiCA for the uninitiated is the EU’s regulatory framework developed to standardise and regulate the crypto market. The framework also focuses on investor protection, financial stability and financial innovation.

Bitpanda, with this breakthrough, has become the second crypto asset service provider (CASP) to receive BaFin’s MiCA license since the framework came into full effect late last year.

The company bagged the permit to expand in the EU from Germany’s Federal Financial Supervisory Authority (BaFin). The license is effective immediately, allowing the fintech unicorn to commence operations across the 27 member EU states.

The company hopes that the license will allow Bitpanda to simplify its operation complexity and cost while streamlining its operations to scale up in the EU, delivering its full range of services to retail and institutional investors.

“This achievement is the result of a decade of commitment to compliance and regulation. With MiCAR, we are not just meeting the industry’s highest standards, we are setting them”, said Lukas Lukas Enzersdorfer-Konrad, Deputy CEO at Bitpanda.

Big news: Bitpanda has secured its MiCAR licence, granted by Germany's BaFin – one of Europe’s top financial supervisory authorities. 🚀

This sets a new benchmark for transparency, security, and trust in crypto across the EU. With this licence, we’re ready to bring regulated… pic.twitter.com/i1PlxhwK6U

— Bitpanda (@Bitpanda_global) January 27, 2025

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Implementation Of MiCA Signals Legal Clarity For Bitpanda And The Likes

Before the implementation of MiCA, crypto asset service providers like Bitpanda had to operate under different rules in each country. Things have become much easier for the company in Europe with MiCA. The framework provides clear rules for CASPs, issuers of stablecoins, token platforms and other crypto assets.

For any new digital asset company that wishes to expand into Europe, the pathway has been made much clearer than it was just last year. There is now, clarity in licensing and authorisation. There are now guidelines on the interpretation and classification of digital assets that help investors make informed decisions.

Increased harmonisation of rules and practices have kept exploitation of regulatory arbitrage to a minimum. Also, one passporting, or keeping one license per company for all EU member states instead of the earlier 27 different license has made life much easier for a firm that wishes to expand in the EU.

There is also a prohibition on reverse solicitation. This prohibits a company from approaching any EU client without a license in the EU, boosting financial security within the crypto space in the region.

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Where Does EU Stand In The Global Digital Asset Adoption Race?

The future of crypto in the EU is an ever-evolving topic. The good news is that the region has finally set some ground rules for the crypto market.

EU has previously stated its ambition to become a leader in blockchain and Web3 technology. The European public sector is focussed on developing its own pan European blockchain network. The European Blockchain Services Infrastructures (EBSI) is expected to expand its services and capabilities, including interoperability with other platforms.

Currently, with the President Trump pushing stablecoins, the Euro Zone banks are feeling the need to respond with a digital Euro. Stablecoins operate in a similar manner to money market funds, granting access to short-term rates of an official currency, most often the U.S. dollar.

A digital euro, in contrast, would act as an ECB-backed electronic wallet, operated privately by entities such as banks. It would allow for payments for citizens, even for unbanked citizens. But holdings would probably not exceed a few thousand euros and will not generate interest.

Banks, however, have been concerned that such an arrangement will withdraw their deposits when customers move part of their funds into the security of an ECB-backed purse.

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