Banks Surge into Regulated Crypto Market under MiCA

The European Securities and Markets Authority (ESMA) has revealed that banks are increasingly entering the regulated crypto market under MiCA, leading to a significant shift in the provider landscape.

According to an analysis by Cointelegraph of data published by ESMA, the number of banks listed as crypto-asset service providers under MiCA doubled to around 80 from roughly 40 between June 26 and Sept. 16. This growth has resulted in banks now making up nearly 23% of the total CASP count.

The majority of this expansion can be attributed to Germany, where both large lenders and regional cooperative banks have added MiCA-related entries to the ESMA register. Deutsche Bank, Germany's largest lender, is one notable example, having announced plans to launch digital asset custody services for institutional and corporate clients in Europe.

The 'bank route' under MiCA allows credit institutions to provide crypto-asset services using a separate notification procedure, which differs from the standard CASP authorization process. This has enabled banks to enter the regulated environment without undergoing the same steps as non-bank providers.