Germany Tops MiCA Licenses as Baltic States Drive Crypto Payment Infrastructure

Germany currently leads the EU's Markets in Crypto-Assets (MiCA) regime with 89 authorized crypto-asset service providers (CASPs), more than double the number in France (35) and the Netherlands (29), according to data as of September 2026. This dominance reflects Germany's early engagement with MiCA and its appeal to firms seeking pan-European authorization.

However, industry voices such as Konstantins Vasilenko of Paybis argue that the heart of crypto payment infrastructure is shifting east, as the Baltic states—particularly Lithuania and Latvia—combine regulatory permissions with robust payment systems. Lithuania, for example, hosts 248 fintech companies serving nearly 40 million customers, and its payment institutions processed €166 billion in payments in 2025, according to sector data.

While Lithuania and Latvia have fewer authorized CASPs—13 and 10 respectively—their regulatory and payments infrastructure is attracting attention. Latvijas Banka, Latvia's central bank and regulator, charges a comparatively low €2,500 fee for CASP application reviews, one of the lowest in the EU. This cost advantage, coupled with a streamlined regulatory process, has facilitated the entry of platforms like Paybis, which received both MiCA and payment licenses in May 2026.

In contrast, Estonia has seen a dramatic decrease in licensed virtual-asset firms, from 1,234 in 2019 to just 53 by December 2023, as stricter regulations took effect. This regulatory tightening has prompted many firms to seek more favorable environments elsewhere in the region, reinforcing the role of Lithuania and Latvia as emerging hubs.

The MiCA framework enables authorized CASPs to operate across the EU, diminishing the importance of any single domestic market. As a result, the competitive landscape is less about national license counts and more about operational capabilities, infrastructure, and the ability to process transactions at scale.

For investors and companies, this means that a firm's base in a country with a high number of licenses does not necessarily translate into superior transactional infrastructure or client reach. Baltic states are leveraging their advanced payment rails to position themselves as leaders in crypto transaction processing, a move that could reshape the region’s competitive dynamics as MiCA matures.

The experience of Estonia underscores the risks associated with regulatory tightening, which can reduce the number of licensed firms and potentially drive innovation to more permissive jurisdictions. For policymakers, the challenge will be to balance robust supervision with incentives that support infrastructure development and market growth within the MiCA regime.