BaFin Crypto Custody License (KWG s.1) regulation

Regulation · PageRank 0.0015

Also known as: German Crypto Custody Regime

Overview

Kryptoverwahrgeschäft, or crypto custody business, was introduced as a new regulated financial service under the German Banking Act (KWG) with effect from 1 January 2020, making Germany one of the first EU member states to license crypto custodians. Firms that safekeep, administer or secure cryptoassets or the private keys to them for clients require authorisation from BaFin, Germany's financial supervisor, and BaFin has published guidance on the authorisation application and set up a dedicated contact point for applicants. Since MiCA became applicable in Germany at the end of December 2024, crypto custody falls within the EU-wide CASP authorisation regime, and holders of the national KWG crypto custody licence must transition to MiCA authorisation.

Within the DeFi Intel graph, BaFin Crypto Custody License (KWG s.1) connects to 2 tracked entities, most strongly to Bundesanstalt fuer Finanzdienstleistungsaufsicht, Germany.

Relations

Top connections in the DeFi Intel knowledge graph (confidence-weighted, 2 of 2 total).

Frequently asked questions

What is Kryptoverwahrgeschäft?

The German term for crypto custody business, a regulated financial service under the German Banking Act (KWG) requiring BaFin authorisation.

When did the licence requirement take effect?

1 January 2020, when crypto custody was added to the KWG as a new financial service.

How does MiCA affect the German crypto custody licence?

With MiCA applicable in Germany from the end of December 2024, crypto custody now sits under the EU CASP regime and existing KWG-licensed custodians must transition to MiCA authorisation.