Nexo kept its European operations running smoothly after July 1, thanks to a setup involving two regulated German companies. Instead of holding a MiCA license itself, Nexo channels its crypto custody through Tangany and handles brokerage via DLT Finance both fully authorized under EU rules.
Since MiCA’s transition period ended this summer, crypto firms offering services in the European Economic Area must use licensed providers. Tangany, based in Munich, received its MiCA custody license last September. It manages digital asset safekeeping and staking, allowing Nexo to comply with tough new regulations while keeping users’ funds secure.
DLT Finance, the brokerage arm, covers trading and order execution under both MiCA and MiFID II frameworks. This split means Nexo focuses on the client platform and user experience while relying on partners for regulated custody and trading functions.This structural approach mirrors trends in regulated crypto services, where firms separate front-end wallets from licensed back-end providers to meet complex compliance standards.
The arrangement passed a testing phase without interrupting access for Nexo’s customers. The company says it achieved full EU regulatory compliance ahead of MiCA’s enforcement deadline and continues offering its full suite of products including rewards and crypto-backed loans, though those currently fall outside MiCA’s scope.
By partnering with Tangany and DLT Finance, Nexo navigates Europe’s evolving regulatory landscape with a flexible model that satisfies authorities and keeps its platform alive across the continent.
This content is informational and not financial advice.
