CoinVoice has learned that, according to Ledger Insights, the German Parliament (Bundestag) passed the (Financial Market Digitalization Act) (Finanzmarktdigitalisierungsgesetz of FinmadiG) this week. The Parliament responded to industry requests to ensure legislation is in place before MiCAR comes into full effect on December 30.
FinmadiG not only deals with cryptocurrencies and MiCAR but also impacts other EU laws, such as DORA and the Funds Transfer Regulation. For MiCAR, it introduces the (Cryptocurrency Market Regulation Act) (KMAG), which replaces Germany's old cryptocurrency rules with MiCAR.
Technically speaking, MiCAR is a regulation, so no local law is needed. However, legislation is required to designate BaFin as the regulatory authority; otherwise, BaFin cannot issue licenses. This would allow EU companies with cryptocurrency licenses from other countries to operate in Germany, but German companies would not be able to operate in the EU.
In addition, MiCAR allows companies holding existing licenses to continue operating for up to 18 months, with the transition period determined by each jurisdiction. The new German legislation provides for one year. [Original link]