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CASP (Crypto-Asset Service Provider)

RegulationUpdated: January 15, 2025
Also known as: Crypto-Asset Service Provider, CASPs

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AI RMF (AI Risk Management Framework)Asset SegregationBeneficial OwnershipBeneficiaryBIS (Bank for International Settlements)BSA (Bank Secrecy Act)CASP LicenseCFTC (Commodity Futures Trading Commission)Client AssetsData MinimizationDLT Pilot RegimeeIDAS 2.0ESMA (European Securities and Markets Authority)FATF (Financial Action Task Force)FCA (Financial Conduct Authority)FEAT PrinciplesFinCEN (Financial Crimes Enforcement Network)FINMA (Swiss Financial Market Supervisory Authority)FINRA (Financial Industry Regulatory Authority)FSB (Financial Stability Board)GDPR (General Data Protection Regulation)High-Risk AI SystemHowey TestKYC (Know Your Customer)Market ManipulationMAS (Monetary Authority of Singapore)MiCA (Markets in Crypto-Assets Regulation)MiCA ComplianceMiFID IIOFAC (Office of Foreign Assets Control)OriginatorPassportingPEP (Politically Exposed Person)PII (Personally Identifiable Information)Qualified CustodianQualified InvestorRetail InvestorRight to be ForgottenSAR (Suspicious Activity Report)SEC (Securities and Exchange Commission)SOC 2 (Service Organization Control 2)Strict LiabilityTransaction MonitoringVARA (Virtual Assets Regulatory Authority)Virtual AssetVirtual Asset Service Provider (VASP)Wash Trading
Entity providing crypto services under EU MiCA requiring authorization and regulatory compliance

A Crypto-Asset Service Provider is a legal entity authorized under the EU's Markets in Crypto-Assets Regulation to provide crypto asset services including custody, exchange, transfer, portfolio management, investment advice, and operating trading platforms for crypto assets in the European Union.

Under MiCA, which came into force in 2023 with full implementation by December 2024, CASPs must obtain authorization from national competent authorities in their home member state and comply with comprehensive requirements covering governance, capital adequacy, cybersecurity, asset segregation, client disclosure, conflict of interest management, and complaint handling. Authorized CASPs benefit from a European passport allowing them to provide services across all 27 EU member states without additional authorizations.

CASPs are subject to ongoing supervision, must maintain minimum capital levels proportionate to their activities, implement robust operational and security standards, ensure client assets are segregated from their own funds, and provide detailed disclosures about services, fees, and risks. CASP authorization requirements differ based on services offered, with higher standards for firms handling asset-referenced tokens or e-money tokens deemed significant by ESMA.

Related Terms

CASP License
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