Bitpanda secures MiCAR licence

This achievement marks the start of an exciting new chapter for Bitpanda. With the MiCAR licence, Bitpanda can now expand its services across all EU member states under a unified regulatory framework. 

Bitpanda is safe, trustworthy and regulated

Receiving the MiCAR licence from BaFin - one of Europe’s most respected financial regulators - further underscores Bitpanda's commitment to regulatory compliance and security in the crypto sector. Before this milestone, Bitpanda already held more licences and registrations than any other platform in Europe and beyond. 

Lukas Enzersdorfer-Konrad, Deputy CEO at Bitpanda:

"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. Our focus now is on using this licence to accelerate adoption and growth across the European market."

What does the MiCAR announcement mean? 

The introduction of a dedicated regulatory regime for crypto assets through MiCAR provides a concrete solution to the long-standing lack of clear rules in the industry. MiCAR brings a balanced legal framework that ensures transparency, mitigates risks and fosters accountability - creating a secure environment for all participants in the market. 

As the first region to implement a comprehensive regulatory framework for crypto assets, the EU now serves as a benchmark for other jurisdictions. 

A key member of the EU Parliament who worked on its preparation as a Rapporteur stated: 

“We put order in the Wild West of crypto assets and set clear rules for a harmonised market that will provide legal certainty for crypto asset issuers, guarantee equal rights for service providers and ensure high standards for consumers and investors.”

What does it mean for Bitpanda?

MiCAR is the culmination of the industry's efforts to bring about a balanced and tailor-made regulatory framework for crypto assets in the EU, for which Bitpanda has advocated for many years. MiCAR puts the EU as the global leader and standard-setter for the crypto industry, whereas other jurisdictions - such as the U.S. - are still exploring their strategies, often relying on regulation by enforcement.

The following elements outline what MiCA means for Bitpanda and our customers:

• Legal clarity: Previously, we were operating under different rules in each country but now there are clear European rules for Crypto Assets-Service providers, issuers of Stablecoins (MiCA designates them as Assets Referenced Tokens and E-Money Tokens), Trading Platforms and other crypto assets. Furthermore, there is now: 

  • Clear licensing and authorisation 

  • Guidelines on interpretation and classification of different crypto assets

  • Prohibition of reverse solicitation, meaning a firm cannot approach European clients without a licence in the EU (unless clients acted upon their own exclusive initiatives)

• Harmonisation of rules and practices: This minimises fragmentation and regulatory arbitrage (exploitation of gaps or differences of rules per country)

• Passporting: One licence for all EU Member States and not 27 different licences and/or registrations

• A level-playing field for everyone: EU providers and those from outside the EU cannot operate without the licence 

Bitpanda’s rapid growth, from 1 million users in 2019 to 6 million by December 2024, speaks volumes about our commitment to innovation and user trust. With the MiCAR licence, the stage is set for even faster expansion in 2025, leveraging EU-wide synergies to enhance its services and grow its community.

Eric Demuth, CEO and Co-Founder of Bitpanda, commented:

"With the first MiCAR licence for a major crypto player, Bitpanda is setting a new standard for the crypto industry, paving the way for secure and regulated services across Europe. This milestone enables us to bring easy and safe investing to over 450 million people, unlocking unparalleled growth potential in a market we're ready to fully conquer."

What does it mean for investors?

At Bitpanda, we have always prioritised the highest standards of regulatory compliance and security, ensuring our customers’ funds and digital assets– whether crypto, stocks, or commodities–are safeguarded. For our existing customers, rest assured nothing will change and no action is needed on your part. 

MiCAR has solidified these rights throughout the crypto world, granting protections for investors across the board. The regulation imposes strict obligations on the crypto industry to protect against unethical practices and potential shortfalls committed by malicious actors and entities. 

Here are several key measures MiCAR has introduced to protect investors:

What’s next?

MiCAR introduces a single regulatory regime for the crypto industry, enabling Bitpanda to operate under one licence across 27 countries. This reduces complexity and cost while offering a clear path for scaling operations. Bitpanda’s proactive approach to regulation - reflected in its 17 existing licences, including a PSD2 E-money licence and a MiFID II licence - has positioned the company as the most trusted platform in the industry. The MiCAR licence now enables Bitpanda to expand its offerings across Europe, delivering its full range of industry-leading products, spanning retail and institutional services. 

Disclaimer

This article does not constitute investment advice, nor is it an offer or invitation to purchase any digital assets.

This article is for general purposes of information only and no representation or warranty, either expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this article or opinions contained herein. *Bitpanda Stocks are contracts replicating an underlying stock or ETF. More information and the PRIIPs key information document (KID) are available at bitpanda.com.