Deutsche Börse-owned Crypto Finance gets German licenses, parent readies exchange launch

Crypto Finance’s German subsidiary has been granted four licenses by the German Federal Financial Supervisory Authority (BaFin). This development aligns with the impending launch of Deutsche Börse’s digital exchange.

Crypto Finance (Deutschland) offers institutional-grade digital asset investment products, custody, and trading. The company is already regulated by the Swiss Financial Market Supervisory Authority (FINMA) and will now engage in regulated digital asset trading, settlement, and custody services for German institutions.

Acquisition and Expansion

Deutsche Börse acquired a majority stake in Crypto Finance Group in 2021. Crypto Finance Group operates on the SIX exchange in Switzerland, where it launched the first Swiss crypto asset investment fund.

Deutsche Börse plans to launch a cryptocurrency exchange named DBDX, targeted at institutional users. This initiative aims to provide a reliable ecosystem for crypto assets, with Crypto Finance well-positioned to contribute.

Compliance with MiCA Framework

By obtaining BaFin licenses, Crypto Finance aligns itself with the Markets in Crypto-Assets (MiCA) regulatory framework, part of which will come into force in 2024. This demonstrates a commitment to transparency and security.

BaFin’s rejection of Binance’s crypto custody license application contrasts with approvals granted to Deutsche Bank and Boerse Stuttgart Digital blocknox. Deutsche Börse’s ownership of the Frankfurt Exchange, including the Deutsche Börse Xetra digital exchange, underscores its significance in the digital asset market.