Blockchain Regulation in Germany & MiCA: A Plain-English Guide (2026)

What counts as a "crypto-asset"? ARTs, EMTs and "other"

MiCA defines a crypto-asset as "a digital representation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology." Within that, it sorts assets into buckets, and the bucket determines the rules.

An asset-referenced token references value through a basket of assets, currencies or crypto. An e-money token references the value of a single official currency – the single-currency stablecoin. Everything else that is in scope but is neither an ART nor an EMT falls into the "other crypto-assets" bucket, which covers most utility and exchange tokens offered commercially. The last row is the one people miss, and it has its own section below.

When did MiCA start applying in Germany?

MiCA arrived in two stages, and Germany then added a shorter national deadline.

• 30 Jun 2024 – ART/EMT rules apply (Titles III and IV)
• 30 Dec 2024 – CASP rules apply (Title V etc.) and the ESMA central register goes live
• 31 Dec 2025 – Germany's national CASP transition ends (versus the EU-wide 1 Jul 2026 backstop)

The stablecoin rules (Titles III and IV) became applicable on 30 June 2024. The crypto-asset-service rules and the remaining provisions, together with the ESMA central register under Arts 109/110, became applicable on 30 December 2024. Germany's national CASP transition then ended on 31 December 2025, shorter than the EU-wide 1 July 2026 grandfathering backstop. As of 10 June 2026 the German transition is over.

Who is BaFin – and ESMA, EBA, Bundesbank?

Several authorities share the work. BaFin is the German national competent authority: it authorises and supervises CASPs, supervises ART and EMT issuers (with the EBA stepping in for "significant" tokens), reviews and registers white papers, and enforces the conduct and prudential rules. The Deutsche Bundesbank participates in prudential supervision. At EU level, ESMA runs the central register and drives supervisory convergence, while the EBA oversees significant ARTs and EMTs. Germany's accompanying national law is the Kryptomärkteaufsichtsgesetz (KMAG). For the licensing mechanics themselves – the eight services, capital classes and timelines – see the BaFin CASP licensing process.

The line everyone gets wrong – MiCA vs the eWpG / MiFID II

Here is the load-bearing distinction. MiCA applies to crypto-assets that are not financial instruments. A crypto-asset that qualifies as a transferable security or other financial instrument is carved out of MiCA and stays under MiFID II and, in Germany, the eWpG.

Tokenised bond, share or fund unit → eWpG + MiFID II (securities law). Utility token or stablecoin service → MiCA. Classify the token first.

Germany's eWpG (Gesetz über elektronische Wertpapiere, in force June 2021) lets securities be issued electronically, including as crypto securities (Kryptowertpapiere) on a distributed ledger. It expanded in stages: bonds (2021), then fund units (KryptoFAV, 2022), then registered shares (Zukunftsfinanzierungsgesetz, in force 14 December 2023). Maintaining a crypto-securities register is itself a BaFin/KWG-supervised financial service. So a tokenised security is not a "MiCA problem" at all – it is a securities-law problem. Getting this wrong at the start is the most expensive mistake a token team can make. Our page on founding a blockchain company in Germany goes deeper into what the eWpG covers.

What MiCA does NOT cover

Several categories sit outside MiCA, though the edges are fact-specific and reward caution.

• Financial instruments and securities are excluded and go to MiFID II and the eWpG, as above.
• NFTs that are genuinely unique and non-fungible are excluded, but large fungible series, fractionalised tokens, or de-facto financial or utility NFTs can fall back in. Substance governs, not the "NFT" label.
• DeFi services "provided in a fully decentralised manner without any intermediary" are out of scope, but the bar is high. Front-ends, governance structures and identifiable operators can re-trigger scope, and the Commission is required to review DeFi periodically.
• Also excluded: central-bank digital currency and central banks acting as monetary authorities, and assets already covered by other EU financial law.

Treat any blanket statement like "DeFi is exempt" as caveated and still evolving.

Stablecoins (USDT) and MiCA

At the rule level, ARTs and EMTs may only be offered to the public or admitted to trading in the EU if the issuer is authorised and has a compliant white paper; the ART/EMT rules have applied since 30 June 2024. In early 2025, ESMA and the European Commission published guidance on non-MiCA-compliant ARTs and EMTs, with phased restriction. Whether a specific token such as USDT is compliant at any given moment is the issuer's compliance question, and one we do not assert here – the point is the rule that governs it, not a live status.

How is crypto taxed in Germany – individual vs company?

The tax answer splits sharply by who holds the crypto. A private individual who holds crypto for more than 12 months pays no tax on disposal under §23 EStG; short-term gains are taxed at the personal rate with a small annual threshold (see the BMF letter of 6 March 2025). A company – a GmbH, UG or AG – is treated entirely differently. Crypto income is ordinary business income, subject to corporate income tax (around 15% plus the 5.5% solidarity surcharge) and municipal trade tax, roughly 30% combined, and the one-year exemption does not apply. If you are weighing whether to hold crypto personally or through a company, that gap matters; our English-speaking tax adviser page is the place to take it further, and you should verify the exact combined rate with a Steuerberater.

Does a German CASP licence passport across the EU?

Yes. A single MiCAR CASP authorisation granted by BaFin passports across the EU/EEA. An authorised German CASP can serve clients in all Member States without obtaining a separate licence in each country – one of MiCA's central design goals and a real advantage of authorising in Germany rather than fragmenting across jurisdictions.

Where to go next

If this has clarified the rules and you want to act, two routes follow. To understand the licensing process itself, go to the BaFin CASP licensing process. To work through whether your specific activity is regulated at all, including the eWpG and securities side, start with founding a blockchain company in Germany. For the licence terminology in detail, see our companion explainer on the CASP/VASP licence. This page is the concept; those pages are the action.