With the EU’s Markets in Crypto-Assets Regulation (MiCA) entering into force, many crypto businesses are asking a critical question: “Do we need to obtain a CASP license to operate in Europe?”

This article breaks down who MiCA applies to, what a CASP is, and when you are legally required to obtain a license. We also provide real-world examples to help you understand how your business may be affected.

What Is MiCA?

MiCA (Regulation (EU) 2023/1114) is the European Union’s first comprehensive regulatory framework for crypto-assets. It covers everything from issuance and trading of tokens to the operation of crypto-asset service providers (CASPs).

MiCA entered into force in 2023, but most of its key provisions will begin applying between mid-2024 and mid-2026. CASP licensing becomes mandatory from July 2026, following a transitional “grandfathering” period in some EU countries.

What Is a CASP?

A CASP is a Crypto-Asset Service Provider — a legal entity that offers one or more of the following 10 regulated services in relation to crypto-assets:

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
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
8. Providing advice on crypto-assets
9. Portfolio management of crypto-assets
10. Transfer services for crypto-assets
    
    

If your business performs any of these activities and is based in the EU or targets EU clients, you are likely required to become an authorized CASP.

When Do You Need a CASP License?

MiCA requires a CASP license in the following situations:

1. You are established in the EU and provide crypto-asset services — even if you only serve non-EU clients.
2. You are based outside the EU but market, onboard, or provide services to EU clients, even passively.

This is true for any of the 10 regulated services. MiCA applies both to direct operations and indirect targeting, including through websites, advertising, or agents.

The Reverse Solicitation Exception

MiCA includes a narrow exemption called “reverse solicitation.” This applies when an EU-based client initiates a relationship entirely on their own initiative, without any marketing or outreach from the crypto business.

However, this exemption is interpreted very strictly by ESMA. Any indirect marketing — including online availability or partnerships — could disqualify you from using it. It is not a loophole to avoid licensing.

Real-World Examples

Example 1: EU-Based Crypto Platform
A company incorporated in Poland operates a trading platform and only serves clients in Asia. Even though its clients are outside the EU, the company is based in the EU and therefore must obtain a CASP license under MiCA by July 2026.

Example 2: Offshore Exchange
A company based in Singapore provides crypto custody services and blocks EU IP addresses. It does not market or serve EU clients. This firm does not need a CASP license under MiCA — but it must be careful not to inadvertently target EU users.

Example 3: Offshore Exchange with EU Clients
The same Singapore firm later begins accepting clients from France via its website. Now, it is targeting EU clients and must apply for a CASP license through an EU-based legal entity.

Conclusion

If you are offering crypto-asset services in or to the EU, a CASP license under MiCA is not optional — it is required. EU-based entities must obtain a license regardless of client location. Non-EU entities must avoid targeting EU clients or face penalties for non-compliance.

Now is the time to assess your structure, client base, and service model. For many crypto firms, the MiCA era will require significant adjustments — but also offers legal certainty and a single license to operate across the entire EU market.