Under the EU’s Markets in Crypto-Assets Regulation (MiCA), the concept of the Crypto-Asset Service Provider (CASP) is central. CASPs are the regulated entities responsible for delivering crypto-related services across the European Union, from trading platforms and exchanges to custody providers and brokers.

If your business operates in the crypto space and serves clients in the EU, you may be considered a CASP — and that comes with clear legal obligations under MiCA. This article explains who qualifies as a CASP, what services are covered, and what compliance means in practice.

What Is a CASP?

A Crypto-Asset Service Provider (CASP) is any legal person that offers one or more regulated crypto-asset services to third parties on a professional basis within the EU.

To legally operate as a CASP in the EU, a firm must:

• Be established in an EU Member State
• Obtain authorization from the local National Competent Authority (NCA)
• Comply with operational, governance, AML, and security requirements set out in MiCA
  
  

Once authorized, CASPs benefit from passporting rights, meaning they can provide services across the entire EU with a single license.

The 10 Regulated Crypto-Asset Services

MiCA identifies 10 specific services that require CASP authorization:

1. Custody and administration of crypto-assets on behalf of clients
2. Operation of a trading platform for crypto-assets
3. Exchange of crypto-assets for funds (fiat)
4. Exchange of crypto-assets for other crypto-assets
5. Execution of orders on behalf of clients
6. Placing of crypto-assets
7. Reception and transmission of orders for crypto-assets
8. Providing advice on crypto-assets
9. Portfolio management of crypto-assets
10. Transfer services for crypto-assets
    
    

A company only needs to be authorized for the services it actively provides — but offering even one without a license is a breach of MiCA.

Who Needs to Become a CASP?

You need to apply for CASP authorization if:

• Your company is based in the EU and provides any of the above services
• Your company is outside the EU, but markets to or serves EU clients
  
  

Even if you serve only a small number of EU-based users or make your platform available to them by default, you may be within scope.

MiCA also restricts reliance on reverse solicitation — a narrow exemption only available when EU clients initiate contact entirely on their own, without any marketing or inducement.

What Are the CASP Licensing Requirements?

To obtain a CASP license, a firm must submit a detailed application to the relevant NCA, which includes:

• A program of operations describing the crypto services offered
• Corporate governance structure and fit-and-proper assessments for key personnel
• Detailed AML/CFT policies and internal controls
• A business continuity and risk management plan
• ICT and cybersecurity documentation
• Policies for client protection, including asset segregation, disclosures, and complaints handling
  
  

MiCA also requires ongoing compliance, including periodic reporting, supervisory audits, and public disclosures.

Ongoing Obligations for CASPs

Once licensed, CASPs are subject to a wide range of ongoing requirements:

• Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) compliance
• IT and cybersecurity standards
• Client asset safeguarding and segregation
• Transparent fee structures and disclosures
• Regular reporting to regulators and maintenance of internal records
• Procedures to detect and report market abuse, such as insider trading
  
  

Failure to meet these obligations can lead to penalties, license suspension, or loss of passporting rights.

Why Becoming a CASP Matters

Becoming a licensed CASP under MiCA offers several advantages:

• Legal certainty in all 27 EU Member States
• Access to the world’s largest regulated crypto market
• Increased trust from clients, banks, and institutional partners
• A foundation for long-term, compliant growth in the EU
  
  

As the industry matures, operating without a license will become increasingly difficult — both legally and commercially.

Conclusion

MiCA brings long-awaited regulatory clarity to the European crypto sector, and CASPs are at the center of this framework. Whether you’re a centralized exchange, custody provider, trading desk, or advisory firm, offering crypto services in the EU now means operating under strict but fair rules.

Understanding what it means to be a CASP — and taking action early — is essential for any crypto business with ambitions in Europe.