Austrian cryptocurrency exchange Bitpanda has secured a MiCA license from the Federal Financial Supervisory Authority (BaFin) in Germany. The exchange announced the development on Monday via a post on its official X page.
With the approval, the fintech company became one of the latest digital assets services providers to secure a license under the European Union’s Markets in Crypto-Assets (MiCA) regulatory regime. As revealed, the license permits Bitpanda to function in all 27 member states of the European Union including Germany.
More so, the latest development underlines how Bitpanda is synergizing with regulators to ensure a good relationship. Also, it will support the firm to become a market leader across various emerging crypto hubs in Europe.
However, the CEO and co-founder of Bitpanda, Eric Demuth urged the European Union to ensure the full effectiveness of the new regulatory framework. Demuth explained that without consistent enforcement, it may be difficult for companies to comply with the regulations.
The CEO opined that the MiCA could usher a good development beyond the European cryptocurrency landscape.
Side Note on Bitpanda
Before now, Bitpanda has worked closely with regulators in Germany. Last year, according to a Binbits report, the firm partnered with Deutsche Bank to foster real-time inbound and outbound payment. Leveraging the partnership, Bitpanda intended to improve transaction efficiency and security for its users in Germany.
Meanwhile, the latest approval made Bitpanda the second CASP to obtain the MiCA license from BaFin. Recall that on January 17, Boerse Stuttgart Digital Custody, a subsidiary of Boerse Stuttgart Group, also received the license from the regulatory body.
Recently, the exchange obtained an in-principle approval from the Virtual Asset Regulatory Authority (VARA) to expand into the United Arab Emirates. The approval created a pathway for Bitpanda to establish a business presence in the Middle East.
Reports indicated that Bitpanda intended to use the UAE as an expansion hub outside Europe. Still, the in-principle license will only permit the exchange to operate in the country for a while before receiving full approval.
As indicated the cryptocurrency exchange must fulfill some extra demands despite meeting the full criteria for the license. On the flip side, Bitpanda said it is working behind the scenes to establish more collaborations with relevant regulators in the UAE.