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 announced on January 27 that it had secured a MiCA license from Germany’s Federal Financial Supervisory Authority (BaFin), effective immediately. This license allows Bitpanda 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 officially entered full effect on December 30, 2024.
With MiCA now in force, Bitpanda co-founder and CEO Eric Demuth expressed that the success of the regulation hinges on its enforcement. “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 without adhering to the rules. He stressed that without consistent enforcement, the regulation may become ineffective and disadvantage firms that aim to comply.
Call for EU to Learn from the US Crypto Regulation Model
While Demuth is optimistic about MiCA’s potential to boost crypto adoption in Europe, he also called on European lawmakers to learn from the United States‘ regulatory approach. He pointed to the speed and determination with which the U.S. is positioning itself as the global crypto hub and emphasized that the EU needs to catch up.
“The speed and determination with which the US is positioning itself as the global crypto hub are setting new benchmarks,” Demuth said. “It may become increasingly difficult for the EU to maintain its competitive advantage in the sector if it doesn’t act quickly.” He also stated that regulation, while important, should not stifle growth, and advocated for a global view that recognizes the internet’s lack of national borders.
Bitpanda’s MiCA license comes after Boerse Stuttgart Digital Custody, a subsidiary of Boerse Stuttgart Group, became the first CASP to secure the MiCA license on January 17, 2025. Boerse Stuttgart Digital Custody is one of the largest exchange groups in Europe.
What The Author Thinks
While MiCA is an important step for crypto regulation in Europe, the EU must accelerate its efforts to match the pace of global competitors, particularly the U.S. The EU’s approach to crypto regulation should balance the need for robust enforcement with the flexibility to foster innovation. If Europe does not adapt quickly, it risks losing its competitive edge in the growing crypto space, especially as countries like the U.S. push forward with aggressive strategies to dominate the global market.
