The digital asset management platform Nexo has updated its operational structure in the European Economic Area (EEA) to ensure compliance with the EU's Markets in Crypto-Assets Regulation (MiCAR). Instead of obtaining a direct MiCAR license, Nexo has distributed the servicing of its European clients between two German partners, whose activities are regulated by BaFin — the Federal Financial Supervisory Authority of Germany.
According to a press release, these two partners are Tangany and DLT Finance. Tangany, which holds a license under MiCAR, provides custody infrastructure, ensuring segregated storage of digital assets. DLT Finance, which holds a license under MiCAR and authorization under MiFID II, provides brokerage infrastructure and execution infrastructure for digital asset and financial instrument transactions.
Collectively, these partnerships enable Nexo to offer services that meet European operational standards. Following a test phase, all of Nexo's services in the EEA remain fully active without any service interruptions or disruptions for users.
While some industry participants criticize the EU's regulatory framework as overregulation, Nexo has embraced MiCAR to bolster institutional investor trust and ensure long-term stability.
"MiCAR is the most significant regulatory framework for digital assets that has ever emerged in Europe, and Nexo has been preparing for this for a long time. In choosing DLT Finance and Tangany, this standard was non-negotiable: our partners are best-in-class — subject to rigorous regulation, possess cutting-edge technical capabilities, and share our vision for client protection," stated Jasen Jankov, Product Director at Nexo.
Commenting on the broader discussion around regulation, Eleanor Genova, Head of Communications at Nexo, emphasized that regulatory clarity provides a much-needed benchmark for the industry.
"Clear rules positively impact the industry's credibility and, consequently, its clients. A regulatory framework like MiCAR provides organizations and everyday customers with a clear standard against which to evaluate a platform," Genova told Bitcoin.com News. "Adopting this standard was an obvious decision for us — regulatory clarity fosters the long-term trust we are building with our over 10 million customers worldwide."
Genova noted that while there are debates about whether stringent regulatory regimes might temporarily push innovation offshore, MiCAR serves primarily as an operational foundation, not a restrictive barrier. "Companies that build their operational models with these requirements in mind can confidently operate across the entire EEA," added Genova. "Even if a temporary shift [offshore] occurs, activity will resume as the ecosystem adapts and improves in response to clear regulatory demands."
Industry Consolidation and Platform Trust
As the European market consolidates around this regulatory framework, Nexo anticipates a shift in user behavior: customers will migrate to platforms that prioritize verified regulatory compliance and asset protection.
The executives of Nexo's infrastructure partners emphasized the importance of this collaborative achievement.
"This partnership is a prime example of what can be achieved in the post-MiCAR enforcement environment with the right partners and institutional-grade custody infrastructure. What our three teams have accomplished together, despite the project's complexity, serves as a model for institutions operating in the European market," said Martin Kreitmayr, CEO of Tangany.
"The strongest digital asset platforms are built on infrastructure that clients don't need to think about — it just works. Our role is to support Nexo by providing the financial market infrastructure and execution capabilities needed to deliver a seamless user experience across various products," said Alan Kennedy, Senior Partnerships Manager at DLT Finance.
As one of the world's largest centralized crypto lenders, Nexo, through its compliance framework, is strengthening its position in Europe, enabling the company to play a leading role in shaping the next stage of regulated digital asset management.
