- Nexo can operate across the European Economic Area (EEA) after recent partnerships.
- Both partners are licensed under MiCAR regulation, giving Nexo access to the EEA.
- Nexo users can access the project’s main dashboard and full service under MiCAR.
Centralized digital asset wealth platform Nexo has confirmed its operation across the European Economic Area (EEA) through partnerships with two German firms licensed under MiCAR. According to Nexo, it has partnered with Tangany to enhance its custody services and with DLT Finance for brokerage and trading.
For context, Nexo, as an entity, does not hold a MiCAR license, meaning it cannot operate in regions where the regulation is compulsory. Therefore, partnering with the two German firms, both of which are licensed under MiCAR regulation, allows Nexo to offer services across all EEA member states under a single regulatory framework.
Why is Nexo’s Partnership With MiCAR-Compliant Firms Important?
According to Nexo, rather than risking service disruptions or halts due to shifting regulatory landscapes, it utilizes the infrastructure partnership model to remain fully compliant and “MiCA-ready.” Under this arrangement, Nexo users can access the project’s main dashboard and full service, unlike other platforms that withdraw certain features from European citizens.
Via Tangany, a Munich-based digital asset custodian regulated by Germany’s Federal Financial Supervisory Authority (BaFin), Nexo can offer institutional-grade asset protection. Despite the potential headwinds confronting Nexo as a centralized company, Tangany’s licensed custodian status provides cover, structurally partitioning users’ crypto keys and ensuring their protection by a regulated third party.
In the meantime, Nexo’s partnership with DLT Finance ensures that when users trade or swap crypto on Nexo in Europe, DLT Finance acts as a legal trading counterparty. Such trades run on top of an established, licensed German financial market infrastructure, protecting users from the legal gray areas often associated with offshore crypto exchanges.
A Seamless Process for Users
It is worth noting that the entire architecture of Nexo’s partnership with MiCAR-compliant entities runs behind its client-facing app. The experience remains the same for the end-user, while the heavy compliance lifting happens automatically in the background.
Nexo’s Chief Product Officer, Yasen Yankov, said his company chose Tangany and DLT Finance as partners because of their rigorous regulation, technical sophistication, and alignment in client protection philosophy. According to Yankov, Nexo originated from Europe and considers the region central to its global strategy.
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