Bullish Secures BaFin Licenses, Aiming for EU Expansion Under MiCA

Bullish Group revealed on Wednesday that its German subsidiary, Bullish DE Custody GmbH, had secured key regulatory approvals from Germany’s Federal Financial Supervisory Authority (BaFin) to advance its operations in Europe.

Bullish Secures BaFin Licenses to Drive Expansion in Europe

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

These licenses enable Bullish DE to expand its presence in Germany, capitalizing on the country’s increasing adoption of digital assets.

We are proud to announce that #Bullish has secured licenses in Germany from BaFin, marking a significant step in strengthening our position within the EU.

— Bullish (@Bullish) January 8, 2025

The new licenses were strategically obtained to align with the Markets in Crypto-Assets Regulation (MiCA), which took effect in December 2024.

MiCA provides a unified regulatory framework for crypto businesses throughout the European Union, simplifying compliance processes across member states.

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

Bullish DE plans to focus on services designed for institutional and professional investors, leveraging its new licenses to enhance its offerings within the European market.

In related developments, other companies have also secured BaFin approvals for their operations in Germany.

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

🏦 Tradias, Bankhaus Scheich’s digital asset arm, secured a securities trading bank license from BaFin, allowing it to operate independently and expand its offerings in Europe.#BaFin #Tradias #BankhausScheichhttps://t.co/pzPZgPhZlu

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

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

Germany’s New Digital Finance Law Boosts Regulatory Framework for Crypto

The BaFin approval for Bullish follows another key 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 passed the Act on the Digitalization of Financial Markets (FinmadiG) to align with upcoming EU crypto regulations, including MiCA. #MiCA #Germany #CryptoRegulationhttps://t.co/WWhadHLJPe

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

Rather than directly regulating crypto assets, the law strengthens oversight of companies in the digital finance space, focusing on exchanges and service providers.

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

The FinmadiG law addresses three major EU regulations. The Markets in Crypto Assets Regulation (MiCA) and the Transfer of Funds Regulation (TFR), both effective December 30, 2024, establish a framework for crypto services across the EU and tighten regulations on fund transfer information to enhance transparency.

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