Requirements for key persons

1. Senior managers (directors):

   • Number: MICA does not specify a minimum and maximum number of directors. However, MICA states (part 2, article 59) that there shall be at least several directors.
   • Residency requirements: At least one director must be an EU resident.
   • General requirements: Directories must have a solid reputation, necessary skills, and relevant experience.
   • Required documents:
   1. a clean criminal record
   2. a detailed CV
   3. statements on time commitment and past professional conduct

2. Shareholders:

   • Number: MICA does not specify a minimum and maximum number of shareholders.
   • Residency requirements: There is no restriction.
   • General requirements: Shareholders must have a solid reputation, necessary skills, and relevant experience.
   • Required documents:
   1. a clean criminal record
   2. an ownership structure chart

Capital requirements

Capital requirements vary depending on what services the company will provide:

Class 1: A CASP authorized for the following crypto-asset services:

• execution of orders on behalf of clients
• placing of crypto-assets
• providing transfer services for crypto-assets on behalf of clients
• reception and transmission of orders for crypto-assets on behalf of clients
• providing advice on crypto-assets and/or
• providing portfolio management on crypto-assets

Minimum capital requirements - €50,000.

Class 2: A CASP authorized for any crypto-asset services under Class 1 and:

• providing custody and administration of crypto-assets on behalf of clients
• exchange of crypto-assets for funds and/or
• exchange of crypto-assets for other crypto-assets

Minimum capital requirements - €125,000.

Class 3: A CASP authorized for any crypto-asset services under Class 2 and:

• operation of a trading platform for crypto-assets

Minimum capital requirements - €150,000.

Documentation requirements

There are list of documents that must be submitted with the application:

1. Documents required for all CASPs:
   • The articles of association of the applicant CASP
   • Identity and proof of good repute, knowledge, skills, experience and of sufficient time commitment of the members of the management body
   • Information relating to shareholders or members with qualifying holdings
   • A program of operations setting out the types of crypto-asset services that the applicant CASP wishes to provide, including where and how these services are to be marketed
   • A description of the applicant CASP’s prudential safeguards (insurance policy)
   • A description of the applicant CASP’s governance arrangements and internal control mechanisms
   • A description of the applicant CASP’s business continuity plan
   • Detection and prevention of money laundering and terrorist financing (full packet of policies)
   • Descriptions both in technical and non-technical language of applicant CASP’s IT systems and security arrangements
   • A description of the applicant CASP’s procedures to handle complaints from clients
2. Documents required in case CASP wishes to offer services in other countries:
   • List of EU countries where the company wishes to offer its services
3. Documents required for certain services (each of the 10 services requires its own documents):
   • Custody and administration policy
   • A description of the procedure for the segregation of client’s crypto-assets and fund
   • The operating rules of the trading platform and market abuse detection
   • Information on the exchange of crypto-assets for funds or other crypto-assets (commercial policy)
   • The execution policy
   • Information on the provision of advice or portfolio management on crypto-assets
   • Information on transfer services

Capital Gains Tax (CGT)

The Netherlands does not impose a separate capital gains tax.

Capital gains are considered part of the assets in Box 3 and are subject to a deemed yield tax.

For individuals: cryptocurrencies are treated as assets and fall under Box 3 (applicable for income from savings and investments) for tax purposes. The value of cryptocurrency holdings is assessed on January 1 each year. This deemed return is subject to a 36% tax rate.

For companies: cryptocurrencies held as part of business operations are considered corporate assets. Standard CIT rates apply to profits derived from cryptocurrency activities.

Personal Income Tax (PIT)

The Dutch PIT system is categorized into three distinct boxes, each representing different income types. Specifically, Box 1 (this box covers earnings from employment, business activities, and homeownership) set the following:

• income up to €38,441 is taxed at 35.82%
• income from €38,441 to €76,817 is taxed at 37.48%
• income above €76,817 is taxed at 49.50%

These rates encompass both income tax and national insurance contributions.