Nexo has confirmed full operational compliance with the Markets in Crypto-Assets Regulation ahead of MiCAR’s enforcement across the European Economic Area. The digital asset wealth platform has established its European market presence through a partnership model with two licensed entities rather than pursuing direct authorisation.
The company’s compliance structure divides regulated functions between Tangany, which holds MiCAR licensing for institutional-grade digital asset custody, and DLT Finance, which provides brokerage services under both MiCAR and MiFID II frameworks. This arrangement allows Nexo to continue serving European clients through locally licensed infrastructure while maintaining its global platform operations.
The approach reflects broader strategic decisions facing crypto platforms as MiCAR creates a unified regulatory baseline across EU member states. Rather than withdraw from European markets or pursue costly direct licensing, Nexo has opted for a partnered infrastructure model that separates custody and execution responsibilities across specialised regulated entities.
For digital asset platforms operating in Europe, the distinction matters significantly. MiCAR introduces comprehensive authorisation requirements including capital adequacy, governance standards, and operational obligations. Platforms must now either secure direct licensing, partner with authorised entities, or exit the jurisdiction entirely.
Nexo’s chief product officer emphasised the extended preparation period required for compliance, noting Europe remains central to the firm’s global strategy despite regulatory complexity.
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FXnCO Insight
** The partnership model demonstrates how non-EU crypto platforms can maintain European market access post-MiCAR without bearing full direct licensing costs, though clients and counterparties should scrutinise exactly which entity holds regulatory responsibility at each transaction stage.
Source: Finance Magnates