Bitcoin.de Faces Regulatory Hurdle as MiCA Application Rejected by BaFin

Bitcoin Group SE is exploring alternative operating models for its Bitcoin.de platform after the German Federal Financial Supervisory Authority (BaFin) rejected its subsidiary futurum bank AG’s application for authorization under the Markets in Crypto-Assets Regulation (MiCA). The decision was announced on October 6, and while it is a setback, the company said it had prepared for this possibility. Bitcoin Group SE is reviewing the decision and may lodge an objection or submit a new application in the future. The company is also working to resume trading through regulated partners as quickly as possible.

Bitcoin.de, a German crypto trading platform with over 1.1 million registered users, has been operating as a peer-to-peer marketplace and recently revamped to function as a brokerage. The new platform was set to offer more than 100 cryptocurrencies, crypto swaps, and staking, with an expected launch in late June. However, the launch was delayed as futurum bank awaited MiCA authorization. In August, Bitcoin.de announced that customers' crypto holdings had been moved to new custody infrastructure, and its previous trading system had been switched off. Trading activities have been largely suspended since June 12.

Moritz Eckert, CEO of Bitcoin Group SE, emphasized that the company's priority is to implement the alternative operating model and keep customers informed about the next steps. The decision by BaFin has forced Bitcoin Group SE to reassess its strategy, but the company remains committed to finding a solution that allows it to resume operations under regulatory compliance.