CASP Licensing Under the MiCA Regulation: A Professional Overview

In the context of globalization and the digitalization of financial markets, regulating cryptocurrency activities has become a key factor in ensuring stability and trust within the industry. In the European Union, the primary regulatory framework governing the activities of Crypto Asset Service Providers (CASP) is the Markets in Crypto-Assets Regulation (MiCA), which came into effect on December 30, 2024.

CASP Definition under MiCA

According to MiCA, a CASP is a legal entity that professionally provides one or more services related to crypto assets. These services include:

• Providing advisory services on crypto assets;
• Exchange of crypto assets for fiat currencies and vice versa;
• Exchange of crypto assets among themselves;
• Execution of client orders;
• Management of crypto asset portfolios;
• Custodial services;
• Crypto asset operations on trading platforms;
• Issuance of crypto assets, among others.

CASP Classification and Capital Requirements

MiCA classifies CASPs based on the services they provide:

Class 1: Provision of investment advisory services.

• Minimum capital: €50,000.

Class 2: Services from Class 1, plus the exchange of crypto assets, order execution, portfolio management, and more.

• Minimum capital: €125,000.

Class 3: Services from Classes 1 and 2, plus custodial services, trading platform management, and more.

• Minimum capital: €150,000.

Additionally, CASPs are required to maintain a reserve capital amounting to 25% of fixed expenses from the previous year.

Key Requirements for CASP Licensing

To obtain a CASP license under MiCA, the following conditions must be met:

• Legal Entity: The company must be registered in an EU member state.
• Physical Office: There must be a physical presence within the jurisdiction.
• Qualified Personnel: The company must have directors and key staff who meet the “fit and proper” criteria.
• AML/KYC Procedures: Development and implementation of effective Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures.
• Financial Reporting: Compliance with accounting standards and regular submission of reports to regulatory authorities.
• Client Asset Protection Policies: Ensuring secure storage and protection of client assets.

The CASP Licensing Process

The process of obtaining a CASP license involves the following stages:

• Preliminary Assessment: Analyzing the alignment of the business model with MiCA requirements.
• Documentation Preparation: Developing the necessary internal documents, including a business plan, AML/KYC policies, internal control procedures, and others.
• Application Submission: Submitting the complete documentation to the relevant regulatory authority.
• Application Review: Awaiting a decision from the regulator, which may take several months.
• License Issuance: Upon approval of the application, the company receives official authorization to provide crypto asset services.

Post-Licensing Support

Once the CASP license is granted, the company must:

• Adhere to all MiCA and national regulatory requirements.
• Submit regular reports to the regulatory authorities.
• Ensure continuous monitoring and updating of AML/KYC procedures.
• Conduct internal and external audits.
• Protect client assets and ensure their confidentiality.

Conclusion

Obtaining a CASP license under MiCA is a critical step for companies aiming to legally and efficiently provide crypto asset services within the EU. Adhering to all regulatory requirements not only ensures legal protection but also strengthens trust with clients and partners.

SBSB Fintech Lawyers is a team of professionals specializing in supporting cryptocurrency and fintech startups with licensing and regulatory compliance. We offer a full range of services for obtaining CASP licenses under MiCA and other jurisdictions, including documentation preparation, application submission, interaction with regulators, and post-licensing support.

With our experience and in-depth understanding of cryptocurrency regulation, we will help your business navigate every step of the licensing process and ensure compliance with the strictest standards, thereby enhancing your market reputation.

For a consultation and detailed case analysis, contact us — we are ready to support you at every stage of obtaining your CASP license.

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