Crypto-Asset Service Provider

Definition

A legal person or undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is authorised to provide crypto-asset services under MiCAR.

What is a CASP?

A Crypto-Asset Service Provider (CASP) is any legal person or undertaking whose occupation or business involves providing one or more crypto-asset services to clients on a professional basis. Under MiCAR, crypto-asset services include custody and administration of crypto-assets, operation of trading platforms, exchange services (crypto-to-fiat and crypto-to-crypto), order execution, placing, reception and transmission of orders, advice, portfolio management, and transfer services.

Authorisation Requirements

Under Article 63 of MiCAR, entities wishing to provide crypto-asset services in the EU must obtain authorisation from the competent authority of their home Member State. The application requires a programme of operations, a description of governance arrangements, proof of good repute of management, evidence of minimum own funds (EUR 50,000 to EUR 150,000 depending on services), and internal control policies including AML/CFT procedures. The transitional period for existing providers expires on 1 July 2026.

Capital Requirements

Article 67 of MiCAR sets minimum own funds requirements: EUR 50,000 for custody, administration, placing, advice, transfer, and reception/transmission services; EUR 125,000 for exchange and order execution services; EUR 150,000 for operating a trading platform. Alternatively, CASPs must hold at least one quarter of fixed overheads from the preceding year, if higher.

EU Passporting

Once authorised in one Member State, a CASP may provide services across the entire EU through a notification procedure (Article 65 MiCAR). This passporting right is one of the key advantages of MiCAR authorisation over national registration regimes.