Austrian fintech unicorn Bitpanda has become the latest cryptocurrency firm to secure a license under the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework.
Bitpanda has secured a MiCA license from Germany’s Federal Financial Supervisory Authority (BaFin), the firm said in an announcement shared with Cointelegraph on Jan. 27.
The license, effective immediately, allows the platform to operate across all 27 EU member states under a unified regulatory regime.
Bitpanda is the second crypto asset service provider (CASP) to receive BaFin’s MiCA license since the regulation entered full effect on Dec. 30, 2024.
The need for consistent and robust enforcement of MiCA
With MiCA now in full force, enforcement will determine the effectiveness of the regulatory framework, Bitpanda co-founder and CEO Eric Demuth told Cointelegraph.
“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, referring to foreign CASPs that continue to operate “as if it’s the Wild West.” He added:
“Without consistent and robust enforcement, this legislative milestone risks being ineffective and puts those who actually try hard to comply with European regulation in a significantly worse competitive position.”
Bitpanda CEO calls Europe to look at the US for inspiration
MiCA could bring a positive impact on crypto adoption in the EU and beyond, but it’s still important for European lawmakers to catch up with regulatory developments in other parts of the world, especially the United States, Demuth said..
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“The speed and determination with which the US is positioning itself as the global crypto hub are setting new benchmarks,” he said, adding that it may become increasingly difficult for the EU to maintain its competitive advantage in the sector.
“Regulation is never a factor that accelerates growth,” Demuth said, adding:
“The US sets an example by recognizing that the internet has no national borders and by treating any company with American customers as subject to their regulatory and enforcement measures. The EU should be self-confident to do the same.”
Bitpanda is the second CASP to secure BaFin’s MiCA license after Boerse Stuttgart Digital Custody, which received the license on Jan. 17. Boerse Stuttgart Digital Custody is a subsidiary of Boerse Stuttgart Group, one of the largest exchange groups in Europe.
Additional reporting by Zoltan Vardai.
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