Germany is the EU's largest economy and banking market, with Frankfurt as the seat of the ECB and a major centre for banking, securities and payments. BaFin licenses and supervises most financial firms, working with the Deutsche Bundesbank, while the ECB grants bank licences.
Risk flagStandard
FATFNot listed
EU AML high-risk listNot listed
EU tax listNot listed
Licence regimes6
CurrencyEUR
S&P ratingAAA
Next electiondue by 2029
Germany is not on the FATF grey or black lists (plenary of 19 June 2026); as an EU Member State it is outside the scope of the EU high-risk third-country list (Delegated Reg. 2016/1675, consolidated 29 January 2026) and the EU tax list (Annex I, updated 17 February 2026). Checked 7 October 2026.
Government and politics
Government
Federal parliamentary republic
Federal President
Frank-Walter Steinmeier · since March 2017
Federal Chancellor
Friedrich Merz (Christian Democratic Union (CDU))
Governing parties
Christian Democratic Union (CDU), Christian Social Union (CSU), Social Democratic Party (SPD)
Last election
Federal (Bundestag) election, 23 February 2025
Next election
Federal (Bundestag) election, due by 2029. The Federal Convention elects Steinmeier's successor as Federal President on 30 January 2027
Legislature
Bundestag (630 seats); the Bundesrat represents the 16 federal states
Legal system
Civil law
Economy and finance
Population
83.5m (2025)
GDP
USD 5tn (2025)
GDP per person
USD 60,439 (2025)
Currency
Euro (EUR), euro (floating, managed by the ECB as part of the Eurosystem)
Central bank
Deutsche Bundesbank (part of the Eurosystem)
Credit rating
S&P AAA (stable) · Moody's Aaa (stable) · Fitch AAA (stable) (as of May 2026)
Europe's largest economy, driven by automotive, engineering and chemical exports; Frankfurt hosts the European Central Bank, BaFin and Deutsche Börse and is the euro area's main banking centre.
Bank
Licence to conduct banking business (CRR credit institution)
Minimum capitalUSD 5.6m
TimelineBaFin must decide within 6 months of complete documents (KWG § 33(4)); CRD art. 15 caps the process at 12 months from receipt
AuthorityECB on proposal of BaFin
At least EUR 5 million initial capital in Common Equity Tier 1 for CRR credit institutions (KWG § 33(1) no. 1 d)
Law
Kreditwesengesetz (KWG) §§ 32 and 33; Regulation (EU) No 1024/2013 (SSM) art. 14
Passporting
Yes: EU passport under CRD (Arts. 33 to 39) for branches and cross-border services
Key requirements
Head office and registered seat in Germany (KWG § 33(1))
At least two full-time managing directors who are reliable and professionally qualified
Suitable holders of significant participations
Business plan with organisational structure and internal controls
Crypto-asset service provider (CASP) authorisation under MiCA
Minimum capitalUSD 56k
TimelineMiCA Art. 63: 25 working days to check completeness, then 40 working days to decide on a complete application (clock can be suspended for information requests)
AuthorityBaFin
MiCA Art. 67 and Annex IV: EUR 50,000 (class 1: order execution, placing, transfer services, reception and transmission, advice, portfolio management), EUR 125,000 (class 2: adds custody and administration, and exchange for funds or other crypto-assets), EUR 150,000 (class 3: adds operating a trading platform); or one quarter of prior-year fixed overheads if higher
Law
Regulation (EU) 2023/1114 (MiCA), arts. 59 to 63; Kryptomärkteaufsichtsgesetz (KMAG)
Passporting
Yes: MiCA authorisation can be passported across the EU/EEA by notification (MiCA Art. 65)
Key requirements
Registered office in the Member State where at least part of the services are provided, place of effective management in the EU and at least one director resident in the EU (MiCA Art. 59(2))
Fit and proper management body and suitable qualifying shareholders
Safeguarding and segregation of client crypto-assets and funds, complaints handling, conflicts of interest policy
AML/CFT framework and compliance with the Transfer of Funds Regulation (EU) 2023/1113 travel rule
Existing KWG and WpIG licensees could use a simplified procedure (KMAG § 50(3))
EUR 75,000 (brokerage, portfolio management, advice or placing without holding client money or securities), EUR 150,000 (other firms), EUR 750,000 (dealing on own account, underwriting or an OTF trading on own account) (WpIG § 17)
Law
Wertpapierinstitutsgesetz (WpIG) §§ 15 and 17; Regulation (EU) 2019/2033 (IFR)
Passporting
Yes: MiFID II passport (Arts. 34 and 35) for services and branches
Key requirements
Reliable and professionally qualified managers
Suitable holders of significant participations
Own funds and liquidity under the IFR
Very large firms (EUR 30 billion assets, dealing or underwriting) need a credit institution licence under KWG § 32(1)
European Central Bank (Single Supervisory Mechanism) (ECB) · websiteBanks
Gemeinsame Glücksspielbehörde der Länder (GGL) · websiteOnline gaming
MiCA: Germany applied a 12-month transitional period; under KMAG § 50 deemed-continuing permissions for existing crypto business lapsed at the latest at the end of 31 December 2025. Online casino table games are not among the GGL permit types listed on the pages consulted; their status was not reviewed here. GGL application fees were not stated on the pages consulted. Payment institutions, e-money institutions and investment firms are supervised by BaFin with ongoing monitoring by the Bundesbank.
General information
About Germany
Natural Earth boundaries. Map is indicative.
Status
Sovereign state
Capital
Berlin
Area
357,022 km²
Official languages
German
Time zone
UTC+01:00 (UTC+02:00 in summer)
Main exports
cars
vehicle parts
packaged medicine
machinery
plastic products
vaccines
Main export partners
United States
France
Netherlands
China
Italy
Sources for the country information(8)
Country information checked 9 October 2026. Licensing data updated 7 October 2026. Information only, not legal advice; requirements change. Regulatory notice.
