The issue is Germany interpreted MiFid as covering bitcoin exchanges. Bafin is the regulatory body that is relevant to this, but there is no such thing as a money transmitter. The closest thing to that terminology would be a payment institution which is the relevant law in France + Luxembourg.

That is like saying that the London Stock Exchange is pretty much a remittance company.

But yes, that is the most likely reason, sounds like a lawyer of theirs is a little jumpy because generally speaking its not how EU regs go, but I don't know how much of a difference the fact its P2P bank wise would make.