Bunq starts crypto-services for the Dutch Market and other countries
Category: crypto regulation, Licenses
Dutch Bunq bank has started offering crypto services to in its banking app, which, according to the company is a wish of it’s users. Other banks are still cautious about offering crypto services. The crypto services are available in the Netherlands, Belgium, France, Spain, Italy and Ireland and is being expanded to the rest of Europe and the United States. We give you a brief update on de crypto-services licences that allows providers in the crypto-market to offer their services to the marktet
More crypto-services availalble in the Dutch market
Bunq bank indicated that interest in digital currencies is high among its target audience, but many have not yet found a suitable trading platform, “when it comes to security and ease of use. Earlier, Bunq added stock trading to the app. Bunq Crypto we are responding to an important wish of users’. Crypto trading is now available in the Netherlands, Belgium, France, Spain, Italy and Ireland. This will later be expanded to the rest of Europe and the United States. In the latter market, Bunq is trying to obtain a banking license.
Crytp0-servies under the Mica Regulation
Financial institutions can offer licensed crypto services under the European Markets in Crypto-Assets Regulation (MiCA). A provider only needs 1 licence form an EU country to offer it’s crypto services in the whole of Europe. The regulation ensures clarity and a safer crypto market. Regulators have been critical, saying MiCA is not yet very strict and could actually increase risks if banks step in because of the new rules. However, Bunq’s crypto services fit within the legal framework established in part by the MiCA Regulation. Bunq is entering a crypto market in the Netherlands, with leading crypto exchanges such as Bitvavo and international exchanges such as Coinbase and Bybit. Yet the market is still growing, as commissions on crypto transactions tend to be much higher than in other markets.
What crypto assets are subject to a Mica-licence?
Crypto assets are defined in the Mica regulation as a digital representation of a value or right that can be traded via a distributed ledger. Thus, outside this definition are crypto assets that are not exchangeable and uniquely represent real assets (Non-Fungible Tokens). Also excludes are crypto assets that have the same characteristics as existing financial products or instruments. Stablecoins are covered by the MiCAR, but they will be subject to specific and additional rules distinguishing between stablecoins whose value is linked to multiple currencies, commodities or cryptos (asset-referenced tokens) and stablecoins whose value is linked to the value of a single currency (electronic-money tokens). The European Banking Authority (EBA) determines which of the categories (asset-referenced token, electronic-money token or utility token) the crypto asset falls under
The Dutch procedure for a CASP licence
The provider applying for an Mica-licence must submit an application to the AFM. A law firm can also file the application. The AFM will send a receipt within 5 days and simultaneously assign a manager who will become your first contact throughout the procedure. The AFM will then do the first completeness check. Should anything be incomplete, the AFM will set a deadline for you to complete the application. If the application is not made complete within the deadline, the AFM may reject the application. So, accurate en complete application are of the essence.
Once everything is complete, the AFM will start the evaluation, which must be done within 40 days by law. During the first 20 days of this, the AFM can request additional information, this will pause the application by up to 20 days. Several meetings will be held throughout the process, this depends on the complexity, scale and nature of the application. After this, the AFM will deliberate on the application. Finally, the AFM will grant or refuse the licence. The whole procedure may at least take 5 months. You can read more here on the application procedure in the Netherlands.
Preparation of a crypto-license application with Blenheim
Our firm has substantial experience in Dutch licence procedures. We’re happy to refer to the standard book Business Licences in the Netherlands of founding partner Mark van Weeren. Are you planning on or already offering crypto services? If so, you will need a licence from AFM. As a pre-scan can be done with the supervisor AFM before the full application. This licence application procedure will be quite complex and requires special knowledge. The AFM also prefers applications based on legal advice from a specialized law firm. Blenheim has an extensive team of licensing specialists. We are ready and happy to assist you.