Boerse Stuttgart is the very first German Crypto Provider licensed under MiCA. Stuttgart Digital Custody, owned by Boerse Stuttgart, became the very first German crypto service provider licensed according to Markets in Crypto-Assets Regulation. With the license provided on Jan. 17 by Germany’s BaFin Federal Financial Supervisory Authority, it is allowed to offer regulated cryptocurrency services within the European Union.
This foundation enables us to further extend the Boerse Stuttgart Digital product range in Europe, while internationally advancing the growth and structural development of digital finance,” said Matthias Voelkel, CEO of the Boerse Stuttgart Group. This places the company in a strong position to become one of the leading regulated infrastructure providers for banks, brokers, and asset managers.
Record-Breaking Growth in Crypto Trading
Boerse Stuttgart in 2024 tripled its volume of cryptocurrency trading, contributing some 25 percent to the Group’s revenues; at the year-end, the Exchange was holding €4.3 billion, or around $4.4 billion of crypto assets belonging to its clients.
Meanwhile, Bitcoin (BTC) remained the most traded asset, accounting for roughly 50% of all crypto transactions on the platform. This surge indicates the growing demand for cryptocurrencies and underlines the pivotal role that the exchange plays in the market.
MiCA Brings Regulation and Challenges
MiCA is the first complete regulatory framework applied to the crypto industry, effective December 30, 2024, providing terms on registration, investor protection, and transparency in view of the harmonization of the European crypto market.
But MiCA has brought its own set of issues, particularly to the stablecoin market. For instance, Coinbase delisted Tether’s USDT in December, citing concerns over compliance with the new laws. However, USDT is still traded on several EU exchanges, pending further regulatory clarity.
Concerns Over Innovation
Despite its potential, MiCA has raised a number of red flags with regard to regulatory overreach. According to Marina Markezic, co-founder of the European Crypto Initiative, ambiguities in the regulation might stifle innovation.
“There is quite some confusion,” she said, especially regarding DeFi and NFTs. Smaller projects will hardly be able to afford such high standards, which may reduce the pace of innovation in new technologies.
Markažić sees more consolidation going forward as the market matures. “MiCA will accelerate the institutionalization and consolidation of the EU crypto market”, she said, alluding to changing times for the sector.
This milestone by Boerse Stuttgart underlines the changing world of crypto regulation for broader adaptation and growth in a structured manner.
