Since the beginning of January, BaFin has been accepting applications for the so-called MiCAR licences, which are required by Crypto-Asset Service Providers (CASPs) to offer their services across Europe. The process is well-organised thanks to EU legislative requirements, and applicants can expect a quick process if they have all the necessary data.

It took Boerse Stuttgart Digital Exchange just two weeks following its application to announce its success as the first German CASP to be granted a licence. The Swabians describe the regulatory framework as „a milestone for the harmonisation of cryptocurrency regulation standards within the EU.“

The benefits of harmonised markets are undisputed, and Brussels is already setting the stage for the big leap. This should fuel interest from both European and foreign providers in a cross-border unified market. Those who have invested regulatory effort into obtaining the licence have a strong interest in ensuring capital is allocated to their platforms here. And that's the essence of the systemic competition, especially with the US, which, after years of regulatory mismanagement, is now beckoning with free crypto markets.

This should be an incentive for the EU to quickly move forward with regulatory changes. For instance, quantitative limits on stablecoins should be removed. This will not jeopardise the euro at this stage of development, so there is no need to be overly protectionist. In the US, the narrative is spreading that US stablecoins can secure the dominance of the dollar. It is even being suggested that this could create additional demand for US Treasury bonds. From a pricing perspective, that would be electrifying. It illustrates the potential opportunities this innovation holds. EU institutions should look to the US for inspiration to allow the promising beginning with MiCAR to fully evolve.