As the European Union’s Markets in Crypto-Assets (MiCA) regulation continues to reshape the digital asset landscape, one of the industry’s long-standing players has found a way to keep its services running in the region. Nexo, the crypto lending and borrowing platform, has announced that its services for clients in the European Economic Area (EEA) remain available through partnerships with two MiCA-licensed entities: Tangany and DLT Finance.
The move is a significant one, as it demonstrates how crypto firms can adapt to the new regulatory framework without disrupting their user base. MiCA, which came into full effect in phases, aims to create a unified legal framework for crypto assets across the EU. For companies like Nexo, this means either obtaining their own license or partnering with already-licensed providers to continue operations.
How Nexo Is Navigating MiCA
Nexo’s strategy is straightforward but clever. By partnering with Tangany and DLT Finance—both of which hold MiCA licenses—the platform can offer its core services to EEA clients without needing to secure its own license immediately. This approach allows Nexo to maintain compliance while avoiding the lengthy and costly process of becoming a licensed entity itself.
Tangany is a German-based digital asset custodian, known for its institutional-grade custody solutions. DLT Finance, also based in Germany, is a regulated broker and custodian for digital assets. By leveraging their licenses, Nexo can continue to offer services such as crypto storage, exchange, and other non-lending features to its European users.
What This Means for Users
For Nexo’s EEA customers, the practical impact is minimal. They can still access their accounts, trade digital assets, and use the platform’s core features. The transition has been designed to be seamless, with no interruption in service. However, there is one notable exception that users need to be aware of.
The Lending Catch
While Nexo’s partnership with Tangany and DLT Finance covers most of its services, lending falls outside the scope of those licenses. This means that Nexo’s popular crypto-backed loan products—where users can borrow fiat or stablecoins against their digital assets—are not included in the current arrangement.
This creates an interesting regulatory gap. MiCA was designed primarily to regulate stablecoins and crypto asset service providers (CASPs), but it does not fully address crypto lending and borrowing. As a result, Nexo’s lending services remain in a gray area within the EU. The company has not yet announced a specific timeline for when or how it will bring lending back under a compliant framework for EEA clients.
Why This Matters
Nexo’s situation highlights the broader challenge facing the crypto industry in Europe. MiCA is a landmark piece of legislation, but it is not exhaustive. Lending, staking, and other DeFi-related services often fall outside its scope, leaving companies to piece together compliance solutions from multiple jurisdictions and license types.
For Nexo, the priority has been to keep the lights on for its European user base. By securing partnerships with MiCA-licensed custodians, the company has bought itself time to figure out a long-term solution for lending. It also signals to the market that regulatory compliance is not a barrier to innovation—it simply requires a more flexible approach.
The Bigger Picture for Crypto in the EU
Nexo’s decision to partner rather than go it alone could set a precedent for other crypto firms operating in the EU. Smaller companies, in particular, may find it more cost-effective to partner with licensed providers rather than pursue their own licenses. This could lead to a more consolidated market where a few regulated entities serve as the backbone for many front-end platforms.
At the same time, regulators in Europe are watching closely. The European Securities and Markets Authority (ESMA) and national regulators will likely scrutinize these partnership arrangements to ensure they do not create loopholes or undermine consumer protection. Nexo’s approach is compliant today, but the regulatory landscape is still evolving.
What’s Next for Nexo?
Nexo has not disclosed whether it plans to apply for its own MiCA license in the future. For now, the partnership model works. The company continues to operate in over 200 jurisdictions globally, and its focus remains on providing a compliant, user-friendly experience. The lending issue, however, will need to be resolved if Nexo wants to fully serve its European clients.
In the meantime, users can take comfort in knowing that their assets are held by regulated custodians. Tangany and DLT Finance are both subject to strict German financial oversight, which adds an extra layer of security compared to unregulated platforms.
Conclusion
Nexo’s ability to keep its EU services running through MiCA-licensed partners is a smart, pragmatic solution to a complex regulatory challenge. It shows that compliance does not have to mean shutting down services—it can mean adapting and finding new ways to operate. The one missing piece, lending, remains a work in progress. But for now, Nexo’s European users can continue trading and storing their crypto with confidence, knowing their platform is taking regulatory compliance seriously.
As MiCA continues to settle into the fabric of European crypto regulation, stories like Nexo’s will serve as case studies for how the industry can evolve without leaving users behind. The road ahead is not without its bumps, but with the right partners and a clear strategy, crypto companies can thrive in a regulated environment.
