Crypto asset service providers (CASPs or crypto companies) need to obtain a crypto license in the Netherlands to conduct their business operations. There are new licensing requirements for crypto companies that will take effect from December 30, 2024. Our team will explain how to open a cryptocurrency company in the Netherlands and how to obtain the license.
Our Dutch lawyers can answer your questions regarding the controls and regulations that influence companies that are involved in cryptocurrency businesses.
We invite you to watch a video on how to open a cryptocurrency company in the Netherlands:
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The Dutch law on cryptocurrencies
The Netherlands may be seen as a “crypto hub” in Europe. Trading on a cryptocurrency exchange and, more often, trading in Bitcoin is possible here although this type of trading is not yet formally regulated by the financial authorities in the country.
As far as Bitcoin, Ethereum and other types of cryptocurrencies are concerned, they are not perceived to be identical to money, as they are defined in the Dutch Civil Code. However, a recommendation set forward by Dutch lawmakers is that these types of currencies should be seen as a means of exchange. Because they are decentralized, they are not perceived as virtual money.
Our attorneys in the Netherlands can give you more information about the current conditions and regulations applicable to this business field.
Opening a crypto company in the Netherlands
Investors who start a cryptocurrency business in the Netherlands will commonly choose to open a limited company. Also called the Dutch BV, this business form has advantages in terms of investor liability and a simple setup process.
In almost all cases, the formation of a new Dutch company will last three days. Foreign investors who need special assistance in the Netherlands can talk to one of our Dutch lawyers.
Investors who open a company can also choose to perform a trademark registration in Netherlands, as needed for their business.
Our team can assist investors who wish to open a cryptocurrency company in the Netherlands and wish to know more about the conditions that apply to crypto service providers.
Compliance with the Anti-Money Laundering and Anti-Terrorist Financing Act is essential, and company owners need to keep in mind that they need to obtain a crypto license in the Netherlands to legally conduct their activities.
The crypto license in the Netherlands
Before the new licensing requirements, the equivalent of the crypto license in the Netherlands was the registration with the Dutch Central National Bank De Nederlandsche N.V. (DNB).
Starting on December 30, 2024, companies must obtain a VASP license in the Netherlands from the Netherlands Authority for the Financial Markets (AFM) or other European supervision authority to operate legally. After this date, companies will no longer be able to register with DNB. Since the process to register with DNB takes about six months, our Dutch lawyers recommend companies apply for the license now.
Companies already registered with the DNB do not need to apply for a new crypto license in the Netherlands until 30 June 2025.
We will answer some of the most important questions about the new regulations for the crypto license in the Netherlands below.
What is the process of obtaining the crypto license?
CASPs must obtain a crypto license in the Netherlands and follow a complex procedure for approval. This includes:
- Applicants will submit their license application with the AFM and other important documentation via a secure platform;
- The AFM will conduct an initial check on the application, to ensure no information is missing;
- If any information is missing, the AFM will request it within a specified timeframe;
- The AFM will officially start evaluating the application for obtaining the crypto license in the Netherlands once all information is complete;
- During this process, the AFM may request further information from the applicant to facilitate the application evaluation;
- The AFM can hold 1 – 3 supervisory meetings with the applicant;
- Once the evaluation is complete, the AFM will notify the applicant of its decision.
Our lawyers in the Netherlands can help you prepare the application.
What are the costs?
Obtaining a VASP license in the Netherlands can be costly. The cost for processing the license application is 200 euros per hour, with a maximum fee of 100,000 euros for the entire application. Additional costs may apply to the assessments conducted by the AFM and the AFM notifications. Reductions can apply to companies already registered with the DNB.
Please keep in mind that these fees can be subject to change. Our attorneys in the Netherlands can give you more information about the exact costs.
How long does it take to obtain the crypto license in the Netherlands?
Obtaining a crypto license in the Netherlands is a lengthy process. The AFM indicates that the procedure takes at least five months, even in the best-case scenarios. This is why it is recommended to seek advice from our law firm in the Netherlands to ensure that all requirements are met and to minimize the risk of any delays.
Statistics about the cryptocurrency market in the Netherlands
Our Dutch lawyers have prepared some interesting statistics about the cryptocurrency market in the Netherlands:
- In 2024, the estimated revenue for the cryptocurrency market is projected to reach 400.3 million USD;
- In 2024, each user in the Dutch cryptocurrency market is expected to generate an average revenue of 71.3 USD;
- By 2025, the number of users in the cryptocurrency market is expected to reach approximately 5.64 million.
Our services also include assistance with VAT registration in the Netherlands for those interested.
Contact our law firm in the Netherlands for more information about setting up a business and about the VASP license in the Netherlands.