Nexo Confirms Continued Operations in the EEA Through Regulated Partners
On July 28, Nexo announced that its offerings remain accessible across the European Economic Area (EEA), facilitated by a framework that involves two regulated partners based in Germany.
Summary of Nexo’s Operational Framework
Nexo has structured its EEA custody services through Tangany, while brokerage services are managed via DLT Finance, both of which operate under licensed European regulatory frameworks. Following the transition period for the Markets in Crypto-Assets Regulation (MiCA), which concluded on July 1, covered crypto services must now utilize authorized European providers. However, Nexo’s Earn rewards and crypto-backed loans are not included within the MiCA and MiFID authorizations held by its partners. Tangany specializes in digital asset custody, whereas DLT Finance focuses on providing brokerage infrastructure for crypto and financial products. Notably, Nexo did not specify if it holds its own MiCA crypto-asset service provider authorization, instead emphasizing its reliance on the regulated services provided by Tangany and DLT Finance. The company affirmed that this partnership was successfully tested without affecting customer access, reiterating its compliance with EU regulations prior to the implementation of MiCA.
Nexo’s Distinct Custody and Brokerage Setup
Tangany is responsible for safeguarding EEA client crypto-assets through its custody infrastructure based in Munich. The company obtained its MiCA license in September 2025, which encompasses custody, transfer, and staking services, allowing it to passport these services throughout the European Union. DLT Finance operates under the brand of DLT Securities GmbH and provides the brokerage and execution infrastructure under Nexo’s framework. Publicly available license information indicates that DLT Securities is authorized under MiCA to offer services such as crypto-asset exchange, order execution, and crypto-asset placement. Additionally, this firm functions as an investment company under the MiFID II regulation, ensuring that the entities managing custody and trading services possess the necessary regulatory permissions. Meanwhile, Nexo maintains control over the client-facing wealth platform and the overall user experience.
Compliance Achieved Ahead of MiCA Implementation
Nexo’s announcement highlights that compliance was achieved before the official enforcement of MiCA, referencing the end of the transitional phase. MiCA was integrated into the EU legislative framework in 2023, with stablecoin provisions starting to apply from June 30, 2024, and remaining regulations taking effect on December 30, 2024. Existing service providers operating under qualifying national regulations were permitted to continue temporarily, but this grace period concluded on July 1, 2026. The European Securities and Markets Authority (ESMA) stated that firms offering covered crypto services after this date must possess MiCA authorization or cease those operations. The transition deadline particularly impacted unlicensed platforms, compelling them to either shut down or transfer their customer base. Nexo’s partnership-driven model enabled its services to persist without a widespread suspension across the EEA.
Lending and Rewards Outside Partner Authorizations
According to Nexo’s EEA website, custody, trading, and futures services are provided through Tangany and DLT Finance under their respective MiCA and MiFID licenses. However, the Earn rewards and crypto-backed loans are categorized as separate offerings that operate under different terms, falling outside the purview of the partners’ authorizations. This distinction is significant, as MiCA does not encompass a comprehensive regulatory framework for crypto lending. European legislators are actively exploring whether upcoming regulations should address lending, staking, decentralized finance, and other areas that remain inadequately covered by the current framework. While Nexo asserts that all its existing services are available in the EEA, customers are encouraged to examine the legal entity and terms that govern each product, as protections may vary among custody, trading, rewards, and credit services.
Increasing Adoption of Partner Models in Europe
Nexo’s operational model illustrates how platforms can maintain their branding and user interfaces while outsourcing regulated functions to licensed infrastructure firms in Europe. This approach mirrors that of Kraken, which entered the German market through a collaboration with DLT Finance, utilizing a similar local regulatory framework. Such partnerships are likely to become increasingly prevalent as MiCA imposes higher compliance, capital, and staffing demands. As previously reported, these regulatory costs could drive further collaborations, mergers, and consolidation in Europe’s digital asset market. No specific launch date or product migration has been disclosed; the immediate focus remains on operating under the new structure, with Tangany and DLT Finance accountable for their authorized roles. ESMA has advised customers to verify the specific provider and available services through its MiCA register, as authorization pertains to named legal entities rather than an overarching international brand or every product offered within a single application.
