"Bitcoin bank" is a brand idea before it is a legal term. In practice it means one of three businesses: a crypto-asset service provider that holds and trades Bitcoin for clients, a licensed bank that also offers Bitcoin, or a Swiss institution under FINMA. Each needs a different authorisation. Since the MiCA transition periods ended, there is no grey zone left in the EU. This overview reflects the state of November 2026 and is general information, not legal advice.
MiCA: the licence for crypto services in the EU
The Markets in Crypto-Assets Regulation (EU) 2023/1114 has applied to crypto-asset service providers (CASPs) since 30 December 2024. Providers that already operated under national law could continue during a transition period of at most until 1 July 2026; Germany and Austria shortened it to 31 December 2025. Today, anyone offering crypto services to EU clients needs MiCA authorisation — or, if already a regulated financial institution, a notification under Article 60. The authorisation is a passport: granted in one member state, it allows services across the EU.
MiCA sets minimum capital by type of service:
| Class | Services | Minimum capital |
|---|---|---|
| 1 | Reception and transmission of orders, execution, placing, transfer services, advice, portfolio management | 50,000 euros |
| 2 | Class 1 plus custody and administration of crypto-assets and exchange against funds or other crypto-assets | 125,000 euros |
| 3 | Class 2 plus operating a trading platform | 150,000 euros |
The applicable amount is the higher of the class minimum and one quarter of the previous year's fixed overheads. Capital is only one part of the application: fit-and-proper management, a business plan, IT security under DORA, safeguarding of client assets and anti-money-laundering controls are reviewed as well.
Germany: BaFin and the KMAG
In Germany, BaFin is the competent authority, and the Crypto Markets Supervision Act (KMAG) implements MiCA. A business whose core is Bitcoin custody, brokerage or exchange applies there for CASP authorisation. Once the file is complete, MiCA gives the authority 60 working days to assess it, after a completeness check of up to 25 working days.
When a full banking licence is needed
MiCA covers crypto services. It does not cover the classic banking business. Taking deposits or granting loans as a business is banking business under the German Banking Act (KWG) and needs a licence under § 32 KWG. For credit institutions in the euro area, the European Central Bank grants the licence on BaFin's proposal; the initial capital is at least five million euros. A licensed bank can then add Bitcoin services by notifying BaFin under Article 60 MiCA instead of applying for a separate CASP authorisation. Bitcoin-backed loans are a typical case where this line matters: lending money as a business is credit business, whatever the collateral.
The word "bank" is protected
Under § 39 KWG, only licensed credit institutions may use "Bank" or "Bankier" in their company name, as a business description or in advertising. Austria and Switzerland have comparable rules. A crypto service provider with a MiCA authorisation is not a bank and may not call itself one. For the brand this means: a name with "bank" belongs to an institution that holds or is applying for a banking licence. Everything else should use terms such as custody, wallet or exchange.
Switzerland: banking licence or fintech licence
Switzerland is not part of the EU, so MiCA does not apply. FINMA grants full banking licences — in 2019 it licensed the first banks focused on digital assets, SEBA (today AMINA) and Sygnum. Below that sits the fintech licence under Art. 1b of the Banking Act: it allows public deposits or crypto-based assets of up to CHF 100 million, provided they are neither invested nor paid interest. For custody-focused business models that do not lend, this is a lighter route.
A roadmap in five steps
- Define the services. Custody, exchange, brokerage, lending or deposits — each points to a different regime.
- Choose the regime and the country. MiCA in one member state with passporting, a banking licence, or Switzerland.
- Plan capital and team. Minimum capital, fit-and-proper managers, compliance and IT security.
- Prepare the application. Business plan, governance, safeguarding concept, AML and DORA documentation.
- Secure the name. Check trademarks and the protected terms before the brand goes public — and secure the matching domains in the markets you will serve.
The name
A bank brand is built on trust, and trust starts with a clear name on the right ending. The portfolio holds names for licensed institutions such as bitcoinprivatbank.de, bitcoinprivatbank.at, bitcoinprivatbank.ch and bitcoinbankhaus.ch in the Privatbank DACH bundle, and international names such as bitcoinbank21.com, bitcoinmerchantbank.com and bitcoincorporatebank.com. Acquiring a domain transfers the name only; the right to use the word "bank" comes from the licence.
Sources
- MiCA Article 143: transitional measures
- Freshfields: grandfathering under MiCA by member state
- BTC-Echo: MiCA capital requirements for crypto service providers
- BaFin: MiCAR and the KMAG
- § 39 KWG: designations "Bank" and "Bankier"
- FINMA: fintech licence
As of November 2026. This article is general information and not legal, regulatory or investment advice.
