Are you wondering if Binance is legal in Germany? You’re in the right place. In this guide, we’ll explain Binance’s legal status, how crypto is regulated in Germany, tax rules, and why Binance is still popular among German traders.

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Yes, cryptocurrency trading is legal in Germany. However, Binance currently operates without a local license from BaFin, the Federal Financial Supervisory Authority.

In July 2023, Binance withdrew its application for a German license after facing regulatory hurdles. This means it can still be accessed by users, but it’s not officially regulated in the country.

In short: Binance is not banned in Germany, but it does not hold formal approval.

Does Binance Work in Germany?

Technically, Binance can still be accessed in Germany. However, the platform does not officially support German residents, and some features may be restricted.

This means while you might still log in and trade, you should expect potential access or service limitations. Always check Binance’s official updates before starting

Germany’s financial laws allow cryptocurrency trading, but exchanges must comply with BaFin regulations if they offer custody or financial services.

Binance applied for a license but decided to withdraw its request in mid-2023 after BaFin signaled it would not be approved.

Operating without a license means:

  • Binance cannot officially market its services in Germany

  • Users are not covered by German investor protection rules

  • Regulatory oversight is limited

This does not make Binance illegal. It simply operates in a gray regulatory area. Some German traders still use Binance for its competitive fees and large token selection.

How Crypto Is Regulated in Germany

Germany treats cryptocurrencies as financial instruments. There’s no separate crypto law, but existing financial and tax rules apply.

Key points:

  • Exchanges offering custody must have a BaFin license

  • Germany follows EU-wide rules such as the upcoming MiCA Regulation

  • Oversight focuses on transparency, anti-money laundering, and consumer protection

While the EU’s MiCA framework will create more unified crypto regulations, for now, rules in Germany are adaptations of existing financial laws.

Tax Regulations in Germany

Crypto profits in Germany are taxed depending on how long you hold your assets:

  • Held less than 1 year → Profits taxed as income at your personal tax rate (up to ~25% or more)

  • Held more than 1 year → Gains may be tax-free for private individuals

You must keep accurate records of all trades for tax reporting. Tools like Blockpit or CoinTracking can help simplify this process.

Also, large crypto deposits to your bank account may trigger additional checks from financial institutions

Even without a German license, Binance remains one of the most used platforms among German crypto traders.

Reasons include:

  • Largest exchange in the world by volume

  • Low trading fees with up to 20% discount using BESTCODE

  • High liquidity for faster order execution

  • Advanced trading tools and security features


For many, these benefits outweigh the lack of local regulatory approval.