Bitcoin Group SE says it is seeking an alternative operating model for its bitcoin.de platform after the German Federal Financial Supervisory Authority (BaFin) refused its subsidiary futurum bank AG’s application for authorization as a crypto-asset service provider under Markets in Crypto-Assets Regulation (MiCA).
In an Oct. 6 announcement, the company said the BaFin decision was a setback, but it had prepared for the possibility of a refusal. It said it is now reviewing the decision and has the opportunity to lodge an objection or submit a new application in the future.
The group said it is also working on ways to resume trading through regulated partners “as quickly as possible.”
“Our priority now is to implement the alternative operating model and to keep our customers transparently informed about the next steps,” said Moritz Eckert, CEO of Bitcoin Group SE.
Bitcoin.de is a German crypto trading platform operated by futurum bank AG, a subsidiary of Bitcoin Group SE. It has over 1.1 million registered users, according to the company. It originally launched as a peer-to-peer marketplace — matching customers buying and selling crypto to one another.
It has since revamped the platform this year to operate as a brokerage, with planned offerings including more than 100 cryptocurrencies, crypto swaps and staking and it was expected to launch in late June.
However, the launch was postponed while futurum bank awaited MiCA authorization. In an August update, bitcoin.de said customers’ crypto holdings had already been moved to new custody infrastructure and its previous trading system had been switched off. Trading activities have largely been suspended since June 12.
Related: 50,000 Europeans call on EU to ease stablecoin rewards restrictions in MiCA review
cointelegraph.com