Applying for a licence for your crypto company

Why do you need a licence?

You must have a licence because crypto currencies (digital coins) are sometimes used by criminals. For example, to launder money and to finance terrorism. The AFM monitors whether you comply with anti-money laundering legislation This is laid down in the European legislation Markets in Assets Crypto Regulation (MiCAR).

It is your responsibility to check transactions for unusual activities, and to perform a background check of your customers (due diligence). The AFM checks how you do this. For example, by investigating your company.

Becoming a crypto broker: a licence is mandatory

The licence requirement applies to all crypto-asset service providers (also called brokers or intermediaries) in the Netherlands and the European Union who exchange legal tender into crypto currencies and vice versa. Legal tender is currencies such as the euro and US dollar, for example. The licence requirement also applies to providers of digital custodial wallets. Foreign crypto brokers wanting to enter the market in the Netherlands must also apply for a licence.

How to prepare your licence application

Before submitting an application, you should:

• Read what the MiCAR rules require.
• Determine which MiCAR rules apply to your crypto business.
• Seek advice from the AFM in preparation for your application.
• Contact the AFM in good time at crypto@afm.nl.
• Submit a comprehensive licence application with a clear overview of the documents provided.
• Be prepared to answer questions from the AFM promptly.
• Request a pre-scan procedure prior to submitting the licence application This is a non-mandatory pre-scan that will help make your application easier.

Processing of your application

A licence application takes a minimum of 5 months and a maximum of 8 months to process. The processing consists of the following steps:

1. Send the permit application with the mandatory forms by email via Cryptshare.

2. You will receive a confirmation of receipt from the AFM within 5 days.

3. The AFM does a first check on completeness of the application. This takes about 25 working days.

4. The AFM may ask for missing information. You must provide this within 5 to 20 working days.

5. The AFM informs you that the application is complete. The statutory assessment period of 40 working days starts at that time.

6. The AFM asks within 25 working days for any additional information needed to complete the assessment.

7. The AFM decides to grant or refuse the licence. You will receive notification of this from the AFM within 5 working days.

Costs for your licence application

The costs for the application, including the assessment of your board members, are €200 per hour with a maximum of €100,000. The costs depend on several factors. For example, the application must be complete and of high quality in terms of content. Also, your services and products should not be very complex or risky. In addition, no significant organisational changes should be required The AFM also assesses your board members for fitness and propriety.

During the entire application period, there is frequent contact between you and the AFM. This way, you also know how far the AFM has progressed with the handling of your application.