Bullish Obtains BaFin Licenses, Targeting Expansion in the EU Under MiCA Regulations

Bullish Group announced on Wednesday that its German subsidiary, Bullish DE Custody GmbH, has obtained essential regulatory approvals from Germany’s Federal Monetary Supervisory Authority (BaFin) to further its operations in Europe.

Bullish Obtains BaFin Licenses to Propel Expansion in Europe

The approvals, issued on December 20, permit Bullish DE to engage in crypto asset custody, proprietary trading, and principal brokerage.

These licenses enable Bullish DE to enhance its footprint in Germany, taking advantage of the country’s increasing acceptance of digital assets.

We’re pleased to share that #Bullish has received licenses in Germany from BaFin, representing a significant advancement in solidifying our position across the EU.

— Bullish (@Bullish) January 8, 2025

The newly acquired licenses were strategically obtained to comply with the Markets in Crypto-Assets Regulation (MiCA), which became effective in December 2024.

MiCA establishes a cohesive regulatory framework for crypto businesses throughout the European Union, streamlining compliance procedures across member nations.

Tom Farley, CEO of Bullish Group, remarked in a press release, “Receiving BaFin’s approval highlights Bullish’s commitment to operating under the highest regulatory standards.”

Bullish DE intends to focus on services tailored for institutional and professional investors, utilizing its new licenses to enhance its offerings within the European market.

In related news, other companies have also received BaFin approvals for their operations in Germany.

On October 9, Frankfurt-based Tradias, the digital asset division of Bankhaus Scheich, acquired a securities trading bank license.

Tradias, Bankhaus Scheich’s digital asset division, obtained a securities trading bank license from BaFin, enabling it to operate independently and expand its offerings in Europe. #BaFin #Tradias #BankhausScheich https://t.co/pzPZgPhZlu

— Cryptonews.com (@cryptonews) October 9, 2024

Previously, Tradias functioned under Bankhaus Scheich’s license as an over-the-counter trading platform for cryptocurrencies and security tokens.

Germany’s New Digital Finance Regulation Enhances Regulatory Framework for Crypto

The BaFin approval for Bullish follows another significant regulatory development: on December 18, the German Parliament (Bundestag) passed the Act on the Digitalization of Financial Markets (FinmadiG).

This legislation aligns Germany with the European Commission’s Digital Finance Strategy and addresses critical areas such as crypto-assets, digital resilience, and money transfers.

Germany’s Bundestag approved the Act on the Digitalization of Financial Markets (FinmadiG) to align with forthcoming EU crypto regulations, including MiCA. #MiCA #Germany #CryptoRegulation https://t.co/WWhadHLJPe

— Cryptonews.com (@cryptonews) December 20, 2024

Instead of directly regulating crypto assets, the legislation enhances oversight of companies in the digital finance sector, focusing on exchanges and service providers.

It aims to prevent fraud and market manipulation, fostering transparency and accountability for a safer crypto environment.

The FinmadiG regulation addresses three primary EU regulations. The Markets in Crypto Assets Regulation (MiCA) and the Transfer of Funds Regulation (TFR), both effective December 30, 2024, create a framework for crypto companies across the EU and tighten regulations on fund transfer information to improve transparency.

The Digital Operational Resilience Act (DORA), which comes into effect on January 17, 2025, enhances cybersecurity requirements for financial institutions, including crypto providers.

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