The Markets in Crypto-Assets Regulation (MiCAR) brings significant changes for crypto service providers in the Netherlands. The regulation aims to harmonize the crypto market within the EU and enhance investor protection. We previously discussed this in our blog about MiCAR. In this blog, we provide an update on the implementation of MiCAR in the Netherlands and the key deadlines companies need to be aware of.
December 30, 2024: License or Notification
As of December 30, 2024, providers of crypto services (Crypto Asset Service Providers, CASPs) must hold a license from the Dutch Authority for the Financial Markets (AFM) to offer their services in the Netherlands and the rest of the EU. Alternatively, they may submit a notification in another EU member state, thereby allowing them to provide services in the Netherlands. This means that companies wishing to operate under MiCAR after this date must have submitted their application to the AFM in a timely manner.
According to the AFM register, as of February 2025, only three CASP licenses have been granted, and one CASP notification has been registered. This indicates that many crypto service providers are still in the application process or may still need to make a strategic decision regarding their future in the Dutch market.
Transition Regime Until June 30, 2025
Companies that registered with De Nederlandsche Bank (DNB) before December 30, 2024, as providers of services for exchanging virtual and fiat currencies and/or as custodial wallet providers (Virtual Asset Service Providers, VASPs), may make use of a transition regime. This allows them to continue offering their services without a MiCAR license until June 30, 2025. This transition period provides these parties with additional time to comply with the new requirements and submit a license application.
According to the latest AFM register for VASPs (February 6, 2025), there are currently 80 registered providers in the Netherlands. This means that a significant number of companies still need to transition to the MiCAR regime, either by obtaining a license or through a strategic restructuring.
Conclusion: Preparing for the Future
The implementation of MiCAR establishes a new standard in the crypto market, imposing stricter requirements on transparency and consumer protection. For crypto service providers, it is crucial to keep track of deadlines and ensure that they apply for the necessary license or notification in a timely manner. Experience shows that, even in the best-case scenario, the process takes at least five months, according to the AFM.
Companies that fall under the transition regime have until June 30, 2025, to finalize their licensing process.
The coming months will be decisive for the future of crypto service providers in the Netherlands under MiCAR.
For more background information and analyses on MiCAR, we refer to our previous blogs on the subject.