1. What is MiCAR?
MiCAR (Markets in Crypto-Assets Regulation) is a landmark EU regulation. It aims to establish a comprehensive legal framework for crypto-assets, which is not currently covered by existing financial services legislation. The core objectives are to enhance legal certainty, promote innovation, safeguard consumers, and maintain market integrity throughout the European Union.
2. What is the "grandfathering regime" and when does it end?
To ensure a smooth transition to MiCAR, a grandfathering regime was implemented in the Netherlands. This allowed Crypto Asset Service Providers (CASPs) already registered with De Nederlandsche Bank (DNB) under national anti-money laundering (AML) legislation to continue operating without a MiCAR license for a limited time. This regime ends on June 30, 2025.
3. Where is EU Internet Ventures B.V. (Banxa’s entity in the Netherlands) in the MiCAR licensing process now?
EU Internet Ventures B.V. has been operating under a DNB registration since 2020. We have submitted MiCAR license applications in November 2024.
The application process involves:
Preparation: This involves a comprehensive understanding of MiCAR requirements, evaluating their applicability to our services, and implementing any necessary operational adjustments.
Documentation: A thorough application package must be compiled, detailing our governance, internal control mechanisms, risk management, capital requirements, client protection measures, and other relevant information.
Submission: The complete application is then submitted to the AFM.
Assessment: The AFM will review the application to ensure compliance with MiCAR regulations. This assessment also includes a fit and proper evaluation of board members and a prudential assessment by DNB for specific requirements.
A supervisory in-person meeting with board members was held between AFM and EU Internet Ventures B.V. in the Netherlands in early July.
We are currently in the final assessment stage of the MiCAR application process.
4. What happens after July 1, 2025, if EU Internet Ventures B.V. (Banxa’s entity in the Netherlands) does not have a MiCAR license yet?
In June 2025, the Dutch Authority for the Financial Markets (AFM) issued a public notice and confirmed a tailored and risk-based approach for CASPs who foresee not obtaining a license in time must undertake appropriate and adequate mitigating measures to ensure that a license is obtained as soon as possible, that MiCAR standards are met (including AML and CFT) and that investors are protected. The AFM will take a risk-based approach.
EU Internet Ventures B.V. has been operating under a DNB registration since 2020. We have submitted MiCAR license applications in November 2024.
You can continue using services provided by EU Internet Ventures B.V. while the MiCAR license application is pending.
5. Why is the Dutch grandfathering period shorter than in some other EU Member States?
MiCAR provides for a transitional period of up to 18 months, concluding on July 1, 2026. However, individual Member States can shorten or waive this period if their national regulatory frameworks, effective before December 30, 2024, are considered less stringent than MiCAR. For instance, the Netherlands has opted for a reduced transitional period of six months.
6. Can we continue using services provided by EU Internet Ventures B.V. (Banxa’s entity in the Netherlands) while the MiCAR license application is pending?
Yes, you can continue to use our services after June 30, 2025.
7. Is Banxa, or EU Internet Ventures B.V., already compliant with MiCAR?
We have made every possible effort to be compliant and undertake all possible steps to avoid detriment to clients, market participants, and the integrity of the market, while also adhering to applicable AML/CFT requirements.