KMAG: What the Crypto Markets Supervision Act Means

The Crypto Markets Supervision Act, or KMAG for short, is the German law that enforces the European regulation on markets in crypto-assets. For you as a customer it has one very practical consequence: anyone offering crypto-asset services in Germany needs a licence for it, and the Federal Financial Supervisory Authority is allowed to name providers that lack one. That is exactly what the regulator is doing at the moment, almost daily.

Between late September and early October, BaFin published nine consumer notices on unauthorised business within four days. Five of them concern crypto-asset services, and five close by expressly citing “section 37(4) of the Banking Act, section 10(7) of the Crypto Markets Supervision Act”. That single line at the foot of the notices is the real finding: Germany's young crypto supervision law has moved out of the licensing department and arrived in consumer warnings.

The Crypto Markets Supervision Act is Germany's implementation of the MiCA regulation

The KMAG dates from December 27, 2024 and appears in the Federal Law Gazette 2024 Part I under number 438. It was last amended on March 25, 2026. Its opening section states in one clause what it is for: it “serves to implement Regulation (EU) 2023/1114”, the regulation on markets in crypto-assets known as MiCA.