BaFin rejected the crypto license application of the bank that runs one of Germany's oldest bitcoin marketplaces. A banking license was not enough.
Germany's financial regulator has turned down one of the country's longest-running bitcoin trading platforms under the European Union's new crypto rules, a rare outright refusal that raises the bar for exchanges still operating on transitional permission.
BaFin refused the application by futurum bank AG, a subsidiary of Frankfurt-listed Bitcoin Group SE, for authorization as a crypto-asset service provider under the Markets in Crypto-Assets Regulation, the company said in a regulatory filing on Tuesday. Futurum bank operates the bitcoin.de marketplace.
The decision also ends BaFin's tolerance of the bank's existing crypto services, the company said. Trading on bitcoin.de has been largely suspended since , more than three and a half months ago.
Futurum bank applied on , so the refusal comes about 15 months after filing. The platform has more than 1.1 million registered users.
The company stressed that "all customer claims remain fully intact." It can file an objection within one month of notification and may reapply. It is also preparing an alternative model in which another institution would act as the counterparty for customers' trades, while a separate German regulated entity would provide custody.
"Bafin's decision is a setback for us," Bitcoin Group's chief executive said. "We take a different view, but had prepared for the possibility of a refusal."
Why it matters
The case is notable because futurum bank already holds a German banking license. That it still failed to secure crypto authorization suggests BaFin is setting a high bar for how firms put MiCA's requirements into practice, not just for whether they hold the right paperwork. As MiCA transitional periods expire across the EU, other platforms operating under temporary tolerance will be watching closely.
There are three ways the episode could play out. It may prove specific to one firm's execution. It may signal tougher gatekeeping across Germany. Or the partner model could restore service relatively quickly, making the refusal a costly detour rather than an endpoint.
What to watch
The one-month objection window and the timeline for launching the partner model are the next milestones. For now, bitcoin.de has no restart date.