Odaily Planet Daily News: The German Parliament (Bundestag) passed the Finanzmarktdigitalisierungsgesetz of FinmadiG this week. The parliament has responded to industry demands to ensure that legislation is in place before MiCAR fully takes effect on December 30th.
FinmadiG not only involves cryptocurrency and MiCAR, but also affects other EU laws such as DORA and fund transfer regulations. For MiCAR, it introduced the Cryptocurrency Market Regulation Act (KMAG), which replaced Germany's old cryptocurrency rules with MiCAR.
Technically speaking, MiCAR is a regulation and therefore does not require local laws. However, legislation is needed to designate BaFin as the regulatory agency, otherwise BaFin cannot issue licenses. This will allow EU companies with cryptocurrency licenses from other countries to operate in Germany, but German companies will not be able to operate in the EU.
In addition, MiCAR allows companies holding existing licenses to continue operating for up to 18 months, with a transition period determined by each jurisdiction. The new legislation in Germany stipulates a period of one year.
