Trade Republic receives MiCA license: New crypto services for investors!

Trade Republic receives MiCA license: New crypto services for investors!

Trade Republic has achieved a significant development in the field of crypto services: the company received a MiCA license from the Federal Financial Supervisory Authority (BaFin). This license is not only important for the German market, but also creates a uniform legal framework for crypto assets across the EU. The regulation affects the safe custody of customer funds and assets as well as the operation of crypto exchanges and enables Trade Republic to expand its crypto service.

The MiCA license opens up numerous new opportunities for Trade Republic. In the future, the company will be able to act as a depository for crypto assets and offer a more comprehensive range of services, including the execution and transmission of customer orders and the provision of transfer services. According to crypto expert Patrick Hansen, this license makes Trade Republic stand out among crypto brokers, which now also include platforms such as Bitpanda, Coinbase and Kraken.

Extensive customer base and future plans

Trade Republic already enjoys great customer trust, with over 4 million users in 17 markets, including 2.5 million in Germany. Users have so far been able to trade cryptocurrencies such as Bitcoin and Ethereum, with a total of 50 crypto assets available as of May 2021. Trading is commission-free, but there is a flat rate of 1 euro per transaction and a spread of up to 2 percent.

Until now, users have not been able to send their cryptocurrencies to their own or other wallets. Trade Republic is currently working with BitGo Europe to securely store crypto assets in cold wallets. However, the MiCA license allows the company to work significantly on the development of its crypto services and plans to expand its offering to other EU countries.

Criticism and future outlook

Despite this progress, Trade Republic is also facing criticism, particularly from the Baden-Württemberg consumer advice center, which complains about a lack of information about interest on deposits in money market funds. Exactly how these requests will be handled is still unclear, but expectations for Trade Republic remain high, especially with regard to the integration of new features and services for crypto investors.

While specific details about the additional crypto plans have not yet been announced, Trade Republic is increasingly positioning itself as a neobank and, in addition to brokerage, also offers payment cards and checking accounts. The MiCA license is valid throughout the European Economic Area (EEA), giving the company the opportunity to strategically expand its offering and further expand its role in the crypto market.

Overall, the granting of the MiCA license shows that Trade Republic is ready to position itself at the forefront of the evolving crypto landscape in Europe. Further developments will be closely monitored as they could have a lasting impact on the future of the company and its services.