Deutsche Börse’s Subsidiary Crypto Finance Gets BaFin License

BaFin, Germany’s financial regulator, has issued four licenses to Crypto Finance, a firm operated by leading stock exchange Deutsche Börse.

The key licenses will allow Crypto Finance to carry out regulated digital asset trading, settlement, and custody services in Germany. The Swiss Financial Market Supervisory Authority (FINMA), already regulates the company,  a Monday announcement noted.

“We are excited that Crypto Finance (Deutschland) GmbH is now licensed by BaFin,” said Stijn Vander Straeten, CEO of Crypto Finance Group. “It distinguishes our offering as one of the few to meet these exceptionally high standards.”

Crypto Finance is targeting institutional investors and aims to strengthen its position within the crypto ecosystem through the licenses.

Deutsche Börse acquired the company in 2021, securing a majority stake. Following the acquisition, Deutsche Börse has been providing its clients with direct access to digital asset services, including post-trade services.

The licenses come at a time when Europe is gearing up to implement Markets in Crypto Assets (MiCA) landmark directive. In October 2023, European officials signed the MiCA framework into law alongside a separate law to prevent money laundering of crypto assets.

“Our commitment to covering the entire value chain sets us apart and we are now proud to be able to achieve significant milestones in Germany, where we offer highly regulated services,” Eric Viohl, Crypto Finance MD, noted.

Deutsche Börse’s Crypto Exchange

The German multinational is aiming to launch a crypto exchange – DBDX – a trusted market infrastructure to the crypto space. Deutsche Börse unveiled the plans in November 2023, and announced that DBDX will launch this year.

The move aligned with Germany’s upcoming crypto regulatory changes. Besides, Deutsche Börse also has plans to introduce a regulated stablecoin to facilitate seamless trading of digital assets.

Smaller competitor Börse Stuttgart also operates a crypto exchange called ‘BSDEX,’ a retail focused exchange but offers institutional custody.