MiCA Regulation in the Netherlands: Crypto Compliance and the AFM

The Netherlands is one of the most active MiCA enforcers in the EU. The Autoriteit Financiële Markten (AFM) has accepted CASP license applications since April 2024, has issued at least one public non-compliance warning against a major exchange, and has made clear that it will take formal action against unlicensed providers targeting Dutch users. If you hold crypto in the Netherlands or use an exchange that serves Dutch residents, the regulatory landscape here matters more than in most other EU member states.

The AFM's Role in MiCA Enforcement

The Markets in Crypto-Assets Regulation (MiCAR), formally Regulation (EU) 2023/1114, created a single EU-wide licensing framework for crypto-asset service providers. Each member state designates a national competent authority (NCA) to handle authorizations and conduct supervision. In the Netherlands, that authority is the AFM, confirmed in ESMA's official list of competent authorities notified under MiCA.

The AFM's remit is broad. It processes MiCA license applications under Articles 60 and 63 of MiCAR, supervises all aspects of CASP conduct, and holds a full toolkit of administrative enforcement powers: orders subject to a penalty, graded administrative fines, and the ability to impose temporary bans on CASP management. These powers were incorporated into Dutch law through amendments to the Financial Supervision Act and the MiCA Implementation Decree.

What distinguishes the Dutch approach is its proactive posture. The AFM has publicly stated that during the MiCA transition, it will actively assess whether unlicensed CASPs are marketing to and onboarding Dutch clients, and will take formal or informal enforcement action where it finds breaches. Advertising compliance is described as an active enforcement priority for 2026. The AFM began accepting MiCA license applications on 22 April 2024. Dutch law introduced a six-month transitional regime requiring firms already active to achieve full MiCA compliance by 30 June 2025. Once a license is granted, it becomes effective EU-wide from 30 December 2024 onward under the passporting mechanism.

Processing timelines are defined by law: the AFM has 20 working days to confirm an application is complete, then 40 working days (extendable by 20) to reach a decision. That structure gives applicants predictability. It also means the AFM has had time to build a clear picture of who is and isn't compliant.

Bitvavo: The Netherlands' Home-Country MiCA Exchange

Bitvavo B.V. is the largest Dutch-headquartered crypto exchange and holds a MiCA CASP license with the Netherlands as its home member state. The AFM notified the license on 26 June 2025, with the license becoming effective from 27 June 2025 onward, depending on the source.

The authorization covers three specific services:

• Custody and administration of crypto-assets on behalf of clients
• Operation of a trading platform for crypto-assets
• Transfer services for crypto-assets on behalf of clients

That combination, custody plus trading platform plus transfers, places Bitvavo among a small group of exchanges holding all three core service permissions under MiCA. The ESMA-passported license is notified for 30 EEA countries, covering the EU-27 plus Norway, Iceland, and Liechtenstein. Bitvavo can serve EEA residents on a cross-border basis from its Dutch home-country authorization.

For Dutch users, the practical implication is straightforward. Bitvavo operates under direct AFM supervision, holds a full MiCA license, and can be used with the confidence that comes from that oversight. Client assets must be segregated under MiCA rules, and Bitvavo is subject to ongoing AFM conduct supervision. A MiCA license does not guarantee returns or protect against market losses. The license means the platform meets defined standards for governance, AML/CFT controls, and client-asset handling. It doesn't mean every trade will be profitable or that crypto prices won't fall.

MEXC Non-Compliance: The AFM's Warning

On 24 September 2025, the AFM published a public warning stating that MEXC Global is actively offering crypto-asset services in the Netherlands without the required MiCAR license. The AFM described MEXC as operating illegally, targeting Dutch users through Dutch-language campaigns and sponsorships, with an unclear legal entity and jurisdiction.

The underlying supervisory decision is dated 16 September 2025. The AFM identified MEXC as non-compliant under MiCAR, specifically for providing crypto-asset services without authorization in breach of MiCAR Section 59. MEXC is not MiCA-licensed as a CASP or token issuer anywhere in the EU or EEA.

The AFM's warning was explicit about the risk. It stated that consumers face a high risk of losing their entire investment if MEXC runs into financial trouble, given the absence of Dutch or EU prudential supervision, a lack of clarity on how client assets are safeguarded, and no guaranteed recourse if funds are lost. MEXC's non-authorized status has also been flagged by other regulators, including the UK FCA and the Seychelles FSA, in their own separate warnings.

If you currently hold funds on MEXC, the AFM's position is unambiguous: MEXC is an unlicensed platform with no EU oversight. The practical steps are:

• Withdraw your assets to a wallet you control, or transfer to a MiCA-authorized exchange
• Do not deposit additional funds on MEXC while it remains non-compliant
• Contact the AFM's Financial Markets Information Line if you have questions about your situation

Moving funds to self-custody is one option here. A hardware wallet like Tangem keeps your private keys entirely off exchanges, so your holdings are not exposed to any platform's solvency or compliance status. Self-custody falls entirely outside MiCA's scope (more on this below).

Other Exchanges Available in the Netherlands

Dutch users are not limited to Bitvavo. A range of MiCA-authorized exchanges have passported their licenses to serve the Netherlands. The table below lists exchanges confirmed in ESMA-register-derived sources as of mid-2026.

Note that Coinbase holds a CASP license without trading-platform permission, which affects the specific services it can offer. Always verify the current status of any exchange in the ESMA MiCA register before depositing funds, as the register is updated as new licenses are granted and conditions change.

Binance is not on this list. As of July 2026, Binance does not hold a MiCA license and does not appear in Dutch or ESMA MiCA CASP registers. Binance has been unavailable to Dutch residents since 2023, after exiting the Netherlands following its failure to obtain registration with De Nederlandsche Bank. Dutch residents remain banned from using Binance.

Self-Custody for Dutch Crypto Users

MiCA's licensing requirements apply to crypto-asset service providers: businesses that provide custody, trading, transfer, or other defined services to clients. The regulation is activity-based. It does not apply to individuals who hold their own private keys and manage their own wallets.

The AFM states that MiCAR authorization applies to CASPs, not to everyone using crypto. Dutch government guidance confirms that the license requirement targets providers of digital custodial wallets and other crypto-asset service providers. A non-custodial wallet user who holds their own keys and signs their own transactions is not providing a service to others and falls outside the authorization requirement.

This distinction matters. As of 2025, 56.58% of crypto users globally preferred self-custody, according to research cited in Tangem's self-custody analysis. The appeal is direct: in self-custody, the wallet holder controls the private keys, transactions are signed locally, and no exchange or intermediary can freeze, restrict, or lose access to the funds.

Tangem is a hardware wallet designed around this model. Private keys are generated inside a secure element chip (Samsung S3D350A, certified at Common Criteria EAL6+) and never leave the hardware. Transaction signing happens on the card itself when the user taps it to their phone via NFC. The keys don't touch an internet-connected device at any point. Because Tangem is a non-custodial self-custody tool, it requires no MiCA license, AFM oversight, or registration. The user holds the keys. No third party holds them on the user's behalf.

One important caveat: in the default seedless setup, if all cards are lost and no seed phrase was created, the funds become permanently inaccessible. Tangem cannot recover them. This is the trade-off that comes with holding your own keys; full control also means full responsibility for backup.