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Boerse Stuttgart Digital Custody has become the first German cryptocurrency service provider to secure the EU-wide license under the Markets in Crypto-Assets Regulation (MiCA).
According to the company’s press release shared with CryptoNews, this license, issued on January 17 by Germany’s Federal Financial Supervisory Authority (BaFin), supports the firm’s ambition to establish itself as a leading regulated infrastructure provider for banks, brokers, and asset managers.
“On this foundation, we will further enhance Boerse Stuttgart Digital’s offerings with integrated solutions for financial institutions across Europe and thus consistently advance the internationalization and structural growth of our digital enterprise,” stated Matthias Voelkel, CEO of the Boerse Stuttgart Group.
Boerse Stuttgart Experiences Significant Growth in Crypto Trading Revenue
Boerse Stuttgart witnessed a remarkable increase in revenue from its cryptocurrency services in 2024.
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As reported by the financial newspaper Barron’s on January 15, citing AFP, the crypto trading volumes at Boerse Stuttgart tripled last year, contributing a substantial 25% to the company’s overall revenue. By the end of 2024, the exchange was managing €4.3 billion (approximately $4.4 billion) in crypto assets for its clients.
Bitcoin (BTC) remained the most traded cryptocurrency at Boerse Stuttgart Digital in 2024, representing around 50% of all crypto transactions on the platform.
MiCA Influences the Stablecoin Market
The approval comes shortly after the enforcement of the MiCA regulation on December 30, 2024, which is the world’s first comprehensive regulatory framework for the crypto sector.
MiCA establishes clear requirements for the registration and oversight of providers, enhances investor protection, and promotes transparency. Simultaneously, it simplifies companies’ access to a harmonized European crypto market by replacing various national regulations.
MiCA has already initiated a significant transformation within the stablecoin sector.
Coinbase, a prominent US crypto exchange, removed Tether (USDT) from its platform in mid-December due to compliance issues with the EU’s MiCA regulations.
Despite Coinbase’s decision, USDT continues to be traded on numerous exchanges across the EU, which are likely awaiting further guidance from European authorities regarding USDT’s adherence to the new regulation.
Why Europe’s MiCA Increases the Barriers for Stablecoin Issuers
The Markets in Crypto Assets Regulation (MiCA), set to take effect this year, is the European Union’s comprehensive crypto legislation. #CryptoNews #EUhttps://t.co/NFgLsQQ7DU
— Cryptonews.com (@cryptonews) February 8, 2024
Will MiCA Hinder Innovation?
While MiCA represents a significant advancement towards a unified European crypto market, concerns about regulatory overreach for retail investors remain,” Marina Markezic, co-founder of the European Crypto Initiative (EUCI), told CryptoNews in an interview.
“There is considerable confusion,” she added, “especially given that the 27 member states making up this trading bloc may interpret the regulations differently.”
Markezic pointed out potential challenges, including uncertainty regarding the regulation’s scope, especially for decentralized finance (DeFi) and non-fungible tokens (NFTs). This ambiguity and heightened scrutiny, according to Markezic, “may also contribute to diminished innovation, as smaller projects and newer initiatives might struggle to meet these demands.”
Additionally, Markezic anticipates a surge in mergers and acquisitions as the industry adjusts to the new regulatory environment.
“MiCA will accelerate the institutionalization and consolidation of the EU crypto market,” she noted, “and trigger a wave of mergers and acquisitions between traditional finance and crypto-native companies, with some firms or specific products even “fading out.”
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