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CASP License

RegulationUpdated: January 15, 2025
Also known as: CASP Authorization, MiCA License

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AI RMF (AI Risk Management Framework)Asset SegregationBeneficial OwnershipBeneficiaryBIS (Bank for International Settlements)BSA (Bank Secrecy Act)CASP (Crypto-Asset Service Provider)CFTC (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
Regulatory authorization required to provide crypto asset services in the EU under MiCA

A CASP License is the regulatory authorization granted by EU national competent authorities permitting legal entities to provide crypto asset services within the European Union's regulatory framework under the Markets in Crypto-Assets Regulation.

Obtaining a CASP License requires applicants to demonstrate robust governance arrangements, adequate capital resources, qualified management with appropriate expertise, comprehensive operational procedures covering cybersecurity and business continuity, asset segregation mechanisms protecting client holdings, and anti-money laundering compliance programs. Applications must include detailed business plans, organizational structures, IT system descriptions, and policies addressing conflicts of interest, client disclosures, and complaint handling.

National competent authorities assess applications and may consult with ESMA for firms seeking to offer significant asset-referenced tokens or e-money tokens across multiple jurisdictions. Once granted, CASP Licenses enable passporting rights allowing service provision throughout the EU. License holders face ongoing supervisory obligations including regular reporting, capital maintenance requirements, external audits, and potential inspections. Violations can result in fines, license suspension, or revocation, ensuring only qualified, compliant operators serve European crypto markets.

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