The Dutch Authority for the Financial Markets
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The Markets in Crypto-Assets Regulation (MiCAR) has come into effect on December 30, 2024. With this newsletter, the AFM wants to inform the sector about important news and developments regarding MiCAR supervision. Want to subscribe to the AFM MiCAR newsletter? |
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Dutch Authorities Call for Targeted MiCAR Reforms |
The Dutch Ministry of Finance, DNB and the AFM have jointly published a non-paper outlining their recommendations for the European Commission’s upcoming review of MiCAR. While welcoming MiCAR as a major step forward for the regulation of crypto-assets, the Dutch authorities argue that the framework should be updated to better address developments in the rapidly evolving crypto market.
The paper focuses on three key areas. First, it proposes a clear regulatory framework for multi-issuance stablecoins, enabling access to global stablecoin markets while maintaining strong prudential and consumer protection safeguards. Second, it calls for stronger consumer protection through enhanced product governance, greater transparency and improved safeguards for client assets. Third, it advocates expanding and clarifying MiCAR’s scope, including the regulation of crypto lending and staking services on behalf of clients and providing greater legal certainty around decentralised finance (DeFi).
The proposed reforms aim to strengthen consumer protection, support innovation and ensure a more resilient European crypto-asset market. |
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Custody Resilience CSA Assessment |
Earlier this year, ESMA launched a Common Supervisory Action (CSA) assessing the digital operational resilience of CASPs providing custody services. The exercise focuses on cyber resilience, governance arrangements, operational controls and risk management practices relevant to custody activities.
All selected CASPs have now submitted the requested information, and the AFM has started the first phase of its assessment. The outcome of the assessment will be shared with ESMA as part of the coordinated European supervisory exercise.
The CSA is expected to provide valuable insights into industry practices and areas for improvement. The AFM also intends to communicate the key findings to the market once the exercise has progressed sufficiently. The overall CSA is expected to be finalised around mid-2027. |
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AFM Study on CASPs TFR-compliance |
In August 2026 the AFM has started an exploration on the compliance of CASPs in the Netherlands with the Transfer of Funds Regulation (TFR). The purpose of the exploration is to assess to what extent CASPs (licensed by the AFM) are able to comply with the TFR and what practical challenges are encountered within their operations when ensuring compliance with the TFR. To achieve this, the AFM has sent information requests to several CASPs and will conduct deep-dives as a follow-up. |
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AFM and DNB Call for Clear Legal Framework for Tokenisation |
The Dutch legal framework currently provides no basis for securities that are issued, held and transferred exclusively as tokens. The Netherlands consequently risks falling behind in the development of digital financial markets and future financial market infrastructures. This is the conclusion reached by AFM and DNB in a joint exploratory study of the tokenisation of securities in the Netherlands. |
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Supervisory Expectations for Unauthorised Stablecoins |
ESMA has published an opinion clarifying supervisory expectations of crypto-asset services involving asset-referenced tokens (ARTs) and e-money tokens (EMTs) - also known as stablecoins- that do not comply with the requirements of MiCAR.
CASPs authorised under MiCAR should cease providing services related to non-MiCAR-compliant stablecoins to clients in the European Union.
The opinion calls on National Competent Authorities (NCAs) to supervise that market participants neither maintain, introduce, nor facilitate access for clients to non-MiCAR-compliant stablecoins through their services. |
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Suitability Policy for CASP Board Members |
Under the ESMA and EBA Joint Guidelines on the assessment of the suitability of members of the management body of issuers of ARTs and CASPs, CASPs are expected to adopt a suitability policy for members of the management body.
The policy should cover the selection, appointment, re-appointment and succession planning of board members, as well as the internal suitability assessment process. It should also indicate the internal function responsible for providing support for this assessment (e.g. human resources). Policy should also define the assessment criteria, composition and diversity considerations for the management body, communication with the competent authority (AFM), and record-keeping requirements for the assessment and its results.
Licensed CASPs should periodically review the policy and update it where necessary to ensure ongoing compliance with the suitability requirements under MiCAR. Entities applying for a CASP licence should be prepared to demonstrate the existence and implementation of such a policy during the authorisation process. |
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ESMA and EBA Publish Recommendations for MiCAR Review |
ESMA and EBA have published their responses to the European Commission’s Targeted Consultation on the review of MiCAR. Both authorities support targeted reforms to strengthen investor protection, improve supervision and ensure the framework remains fit for a rapidly evolving crypto market.
ESMA advocates stricter marketing rules, enhanced cost transparency, stronger supervisory powers and clearer regulatory treatment of emerging activities such as decentralised finance (DeFi), staking, lending and borrowing. It also proposes a harmonised approach to crypto-asset classification and a new regulated service for providing access to DeFi protocols.
The EBA highlights the need for a stronger framework for certain multi-issuer stablecoin arrangements, a review of reserve requirements for stablecoin issuers, and greater clarity around crypto-asset classification. In addition, it recommends exploring a regulatory framework for crypto-asset lending and reviewing reporting requirements to support effective supervision and risk monitoring. Together, the proposals aim to strengthen the EU’s crypto regulatory framework while supporting innovation and market development. |
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ESMA Sets Priorities for Crypto-Asset Supervision in 2027 |
In its 2027 Annual Work Programme, ESMA confirms that the implementation of MiCAR remains a key priority and that supervisory convergence across the EU will continue to be a major focus. Particular attention will be given to areas such as outsourcing, corporate substance, liquidity, reverse solicitation and the classification of crypto-assets. ESMA will also continue supporting cooperation between NCAs to promote consistent supervisory practices across Member States. The programme further highlights the development of supervisory tools and data capabilities, including the next phase of MIDAS, a centralised market surveillance system for crypto-assets.
As the transitional period for operators of trading platforms to ensure that a crypto-asset white paper is drawn up expires on 31 December 2027, ESMA is also expected to conduct preparatory supervisory convergence work on this topic in the next year. |
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As part of its ongoing supervision of CASPs, the AFM, together with DNB, will organise a CASP meet-up in December. This event will provide an opportunity for CASPs and representatives of the regulators to come together, exchange perspectives, and discuss topics relevant to the sector. The AFM will share further information about its ongoing supervision and its supervisory approach.
Through initiatives such as these, the AFM aims to maintain an open dialogue with the sector, enhance its understanding of emerging trends and challenges and to support effective supervision.
CASPs supervised by the AFM have already received a save-the-date invitation. Further information will follow closer to the event. |
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The AFM is committed to promoting fair and transparent financial markets. As an independent market conduct authority, we contribute to a sustainable financial system and prosperity in the Netherlands.
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