Trade Republic receives MiCA license: Revolution in crypto trading started!

Trade Republic receives MiCA license: Revolution in crypto trading started!

The Trade Republic trading platform recently received a MiCA license from the Federal Financial Supervisory Authority (BaFin). This license is a significant step for the company as it opens the door to expanded services in the cryptocurrency space. Trade Republic is one of the largest European neobrokers and now joins the list of licensed crypto exchanges such as Bitpanda, Coinbase and Kraken.

The MiCA (Markets in Crypto Assets) Regulation, which came into force in 2023, creates a uniform legal framework for crypto assets in the European Union. With this license, Trade Republic will be able to expand its crypto trading services and will be able to introduce new features such as direct cryptocurrency exchange and transfer to external wallets.

Expansion of services

Approved services include crypto asset custody and transfer services. Currently, Trade Republic customers cannot transfer their crypto assets to private wallets. The company is working with BitGo Europe to securely store crypto assets in cold wallets and with the British crypto exchange B2C2 for trading.

The MiCA license will allow Trade Republic to act as a depository itself in the future, which will enable the company to offer more services internally. This includes, among other things, executing customer orders and providing transfer services.

Market penetration and user numbers

Trade Republic has developed successfully in recent years and, in addition to brokerage, also offers a payment card and a checking account. The platform currently has over eight million customers in 17 European markets and manages assets worth over 100 billion euros. Users have been able to trade cryptocurrencies at Trade Republic since May 2021, and the offering has now been expanded to include around 50 digital assets.

Trading cryptocurrencies at Trade Republic is commission-free, but there is a flat rate fee of 1 euro per transaction and a spread of up to 2 percent. Previous customers were unable to send cryptocurrencies to their own or other wallets, which could change with the new license, meaning Trade Republic customers could enjoy greater flexibility in the future.

Criticism and challenges

Nevertheless, there was also criticism of Trade Republic, particularly from the Baden-Württemberg consumer advice center, because of insufficient information about the use of interest-bearing deposits. Given the current regulatory environment and constant changes within the crypto industry, it remains to be seen how Trade Republic will overcome the challenges to meet the expectations of its customers and regulatory bodies.

The MiCA license is valid throughout the European Economic Area (EEA), which will allow Trade Republic to expand its crypto offerings in additional countries. Existing crypto service providers have until July 2026 to meet the requirements of the MiCA regulation and adapt to the new framework.