Banks Now Represent Nearly 1 in 4 EU MiCA Crypto Providers

Banks are rapidly increasing their presence in Europe’s regulated cryptocurrency sector, with traditional financial institutions now representing almost one-quarter of providers listed under the European Union’s Markets in Crypto-Assets (MiCA) framework.

The number of banks included in the EU’s MiCA crypto provider register roughly doubled from around 40 on June 26 to about 80 by Sept. 16, according to an analysis of European Securities and Markets Authority (ESMA) data.

Over the same period, the total number of listed crypto-asset service providers (CASPs) increased from 243 to 349. Although the number of non-bank providers also grew, their share of the register declined from approximately 84% to 77%. Banks expanded at a considerably faster rate, increasing their share from roughly 17% in late June to nearly 23% by September.

German banks expand into crypto services

Germany accounted for a significant portion of the increase, with dozens of commercial and cooperative banks appearing on ESMA’s MiCA register. Among the additions is Deutsche Bank, Germany’s largest lender, which announced plans on Wednesday to introduce digital asset custody services for institutional and corporate customers across Europe. A Deutsche Bank spokesperson said the bank expects to receive regulatory approval for the service under MiCA in October.

The expansion is not limited to major international banking groups. Numerous Volksbank, Raiffeisenbank and VR Bank institutions have also joined the register, indicating that regulated crypto services are spreading across Germany’s regional cooperative banking sector.

Banks follow a separate MiCA process

Banks have a different regulatory pathway for entering the European crypto market compared with dedicated cryptocurrency companies. While crypto firms generally need to apply for CASP authorization, credit institutions can provide crypto-asset services under MiCA through a separate notification procedure.

Under Article 60 of MiCA, a credit institution can offer crypto services after submitting the required information to its home regulator at least 40 working days before launching those services for the first time. This notification process allows banks to expand their activities into digital assets without completing the standard CASP authorization procedure required for other crypto service providers.

Sources:

https://www.esma.europa.eu/publications-and-data/interactive-single-rulebook/mica/article-62-application-authorisation-crypto

https://www.esma.europa.eu/publications-and-data/interactive-single-rulebook/mica/article-60-provision-crypto-asset-services

https://www.esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica

https://cointelegraph.com/news/banks-double-eu-mica-crypto-register-esma