Germany Crypto Markets Supervision Act (KMAG)

KMAG is designed to carry out Regulation (EU) 2023/1114 in Germany. It applies to crypto-assets within MiCAR and excludes categories that MiCAR itself excludes. The statute designates the Federal Financial Supervisory Authority (BaFin) as the competent authority for MiCAR supervision, while also assigning cooperation roles to the Deutsche Bundesbank. BaFin’s remit covers institutions and other firms subject to MiCAR and KMAG, as well as trading on crypto-asset trading platforms. The law also connects German crypto supervision with DORA and the EU transfer-of-funds regime for crypto-asset transfers.

The Act should be understood as a national companion statute rather than a substitute for the EU regulation. MiCAR sets the core EU regime for crypto-asset offers, asset-referenced tokens, e-money tokens, crypto-asset service providers and market abuse. KMAG supplies Germany-specific supervisory process, authority powers, transition rules and sanctions that allow BaFin and the Bundesbank to administer that regime domestically.

• BaFin supervision: KMAG gives BaFin general order-making, information-gathering, publication and intervention powers where needed to prevent or address supervisory breaches or market disruptions.
• Authorization controls: BaFin may order the immediate cessation and wind-down of unauthorized public offers of asset-referenced tokens, unauthorized public offers of e-money tokens, or unauthorized crypto-asset services.
• Offers, whitepapers and marketing: The Act contains German enforcement powers for public offers, admissions to trading, crypto-asset whitepapers, modified whitepapers and marketing communications.
• CASP supervision and reporting: KMAG sets notification and reporting duties for institutions, including changes in legal form, cross-border services, qualifying holdings, outsourcing, financial condition and other supervisory information.
• Market abuse investigations: BaFin receives powers to request information, summon persons, inspect records and pursue suspected breaches of MiCAR Title VI on market abuse.
• Custody and insolvency protections: Section 45 treats customer crypto-assets held in crypto custody as belonging to the customer, subject to statutory exceptions.
• Sanctions: KMAG includes criminal and administrative fine provisions for unauthorized activity, market-abuse conduct, non-compliance with MiCAR obligations and failures to follow supervisory orders.

For Germany-based crypto-asset service providers, exchanges, trading platforms, custodians and token issuers, KMAG functions as the national statute that makes MiCAR supervision operational in Germany. It does not replace MiCAR; instead, it supplies German procedural powers, local reporting requirements, enforcement mechanics, transition rules and sanctions around the directly applicable EU regulation. The Act is therefore best read together with MiCAR, BaFin publications, Bundesbank MiCAR information and later German implementing ordinances.

The Bundestag adopted FinmadiG on December 18, 2024, and the Act was issued in the Federal Law Gazette on December 27, 2024. Article 23 gives KMAG staged commencement dates: most of Article 1 was linked to July 1, 2024; selected provisions began December 28, 2024; and further provisions, including parts connected to crypto-asset services and market infrastructure, began December 30, 2024. Section 50 created a transition route for certain existing German authorization holders, with continued reliance ending on authorization or notification outcomes, applicable Article 60 MiCAR deadlines, or December 31, 2025 at the latest.

As of June 3, 2026, the consolidated KMAG text reflects later amendments, including amendments published in March 2026. A near-term implementation checkpoint is the Crypto Markets Notification Ordinance (Kryptomärkteanzeigenverordnung – KMAnzV), issued in May 2026 and scheduled to apply from July 1, 2026, which specifies notices and document submissions under KMAG.