MiCAR CASP Authorisation Guide
The complete step-by-step guide to obtaining a crypto-asset service provider licence under MiCAR Title V. Covers the application process, required documents, capital requirements, timeline, transitional provisions, and EU passporting.
Who Needs CASP Authorisation?
Article 59 of MiCAR requires that crypto-asset services may only be provided by authorised entities. The ten crypto-asset services defined in Article 3(1)(16) are:
Exemptions from CASP authorisation
Credit institutions authorised under CRD, investment firms authorised under MiFID II, e-money institutions (for EMTs), and certain public bodies are exempt from separate CASP authorisation but must still notify their NCA and comply with applicable conduct-of-business rules.
CASP Authorisation Process: Step by Step
The authorisation process under MiCAR Article 63 follows a structured path from service classification to EU-wide registration. Allow 3-6 months for the full process.
Determine service classification
Identify which of the ten crypto-asset services your firm provides or intends to provide. Each service type has specific requirements and capital thresholds. Services include custody, trading platform operation, exchange, order execution, placing, transfer, advice, and portfolio management.
Engage your national competent authority
Most NCAs offer pre-application meetings or guidance. Contact the competent authority of the Member State where your registered office is located. This step is not mandatory but strongly recommended — it can significantly reduce processing time by identifying gaps early.
Prepare application documentation
Assemble the application package: programme of operations, proof of own funds, description of governance arrangements, business continuity plan, internal control mechanisms, risk management procedures, and AML/CFT policies. Identify and vet key function holders (directors, compliance officers).
Meet fit-and-proper requirements
All members of the management body must demonstrate good repute, sufficient knowledge, skills, and experience. Shareholders with qualifying holdings must also be assessed. NCAs will request CVs, criminal background checks, and declarations of interests for key personnel.
Establish governance and compliance framework
Implement governance arrangements including internal control functions, complaints handling procedures, conflicts of interest policies, outsourcing controls, and an orderly wind-down plan. Client asset safeguarding policies must be in place before services begin.
Submit application to the competent authority
File the complete application with your home NCA. The authority has 25 working days to acknowledge receipt and assess completeness. If the application is incomplete, the NCA will request additional information, and the timeline resets upon resubmission.
NCA assessment and decision
The NCA has 40 working days from receipt of a complete application to issue a fully reasoned decision. During assessment, the NCA may consult ESMA and verify AML/CFT compliance with the Financial Intelligence Unit. The NCA will inform ESMA of authorisation decisions.
Registration and passporting
Upon authorisation, ESMA registers the CASP in the public register. To provide services in other EU Member States, the CASP notifies the home NCA, which then informs the host state NCA. Cross-border services may begin after notification.
Required Documents for CASP Application
Article 62 specifies the information that must accompany a CASP authorisation application. The following categories cover the typical NCA submission requirements.
Corporate and Legal
- Certificate of incorporation and articles of association
- Registered office address within an EU Member State
- Organisational chart and group structure (if applicable)
- Shareholders and beneficial owners with qualifying holdings
Business Plan and Operations
- Programme of operations for the next 3 years
- Description of crypto-asset services to be provided
- Marketing and business development strategy
- Technical infrastructure and IT systems documentation
- Client onboarding and KYC procedures
Governance and Personnel
- CVs and fit-and-proper documentation for directors and key function holders
- Governance framework and internal control policies
- Compliance function description and resourcing plan
- Business continuity and disaster recovery plan
- Orderly wind-down plan (Article 74)
Financial
- Proof of minimum own funds (Article 67)
- Audited financial statements (or opening balance sheet for new entities)
- Financial projections for the first 3 years
- Professional indemnity insurance details (if applicable)
Risk and Compliance
- AML/CFT policies, procedures, and controls
- Risk management framework
- Client asset safeguarding arrangements (Article 70)
- Complaints handling procedures (Article 71)
- Conflicts of interest policy (Article 72)
- Outsourcing policy and register (Article 73)
CASP Capital Requirements
Article 67 of MiCAR sets minimum own funds requirements based on the crypto-asset services provided. Where multiple services are provided, the highest applicable threshold applies. CASPs must also maintain own funds of at least one quarter of the preceding year's fixed overheads, if that amount is higher.
| Crypto-Asset Service | Minimum Own Funds | Reference |
|---|---|---|
| Custody and administration of crypto-assets | EUR 50,000 | Art. 67(1)(a) |
| Advice on crypto-assets | EUR 50,000 | Art. 67(1)(a) |
| Transfer services for crypto-assets | EUR 50,000 | Art. 67(1)(a) |
| Reception and transmission of orders | EUR 50,000 | Art. 67(1)(a) |
| Exchange of crypto-assets against funds | EUR 125,000 | Art. 67(1)(b) |
| Exchange of crypto-assets against other crypto-assets | EUR 125,000 | Art. 67(1)(b) |
| Execution of orders for crypto-assets | EUR 125,000 | Art. 67(1)(b) |
| Placing of crypto-assets | EUR 125,000 | Art. 67(1)(b) |
| Operating a trading platform for crypto-assets | EUR 150,000 | Art. 67(1)(c) |
Transitional Provisions & Grandfathering
Article 143 of MiCAR provides transitional arrangements for entities that were already providing crypto-asset services under national law. The rules vary depending on your current regulatory status.
Existing national crypto licence holders
1 July 2026May continue providing services until 1 July 2026 under Article 143, provided they were authorised or registered under national law before 30 December 2024. Must submit a MiCAR application before the transitional period ends.
Credit institutions (CRD-authorised banks)
Notification-based (no deadline)May provide crypto-asset services without separate CASP authorisation. Must notify their NCA at least 40 working days before providing services (Article 60). Subject to ongoing CASP conduct-of-business rules.
MiFID investment firms
Notification-based (no deadline)May provide equivalent crypto-asset services without separate CASP authorisation. Must notify their NCA (Article 61). The crypto-asset services must be equivalent to the MiFID services they are already authorised for.
E-money institutions (for EMTs)
Since 30 June 2024May issue e-money tokens without CASP authorisation. Must comply with Title IV of MiCAR for EMT-specific obligations in addition to the EMD2 framework.
New market entrants (no existing national licence)
Before commencing servicesMust obtain MiCAR authorisation before providing any crypto-asset services. No transitional provisions available. Should apply as early as possible given NCA processing timelines.
Member State discretion on transitional period
Article 143(3) allows Member States to choose not to apply the transitional period, or to reduce its duration. Some jurisdictions may require MiCAR authorisation earlier than 1 July 2026. Always verify the national transposition rules in your home Member State.
Authorisation Timeline
The typical timeline from first engagement with the NCA to receiving authorisation and beginning EU-wide operations.
Pre-application
4-8 weeksEngage NCA, attend pre-application meetings, identify documentation gaps
Documentation preparation
6-12 weeksDraft programme of operations, governance policies, AML/CFT framework, wind-down plan
Application submission
Day 0Submit complete application package to home NCA
Completeness check
25 working daysNCA reviews application for completeness (Article 63(6))
Substantive assessment
40 working daysNCA assesses application, may request additional information (Article 63(7))
Decision
End of assessmentNCA grants or refuses authorisation with fully reasoned decision
ESMA registration
Post-decisionAuthorised CASP is entered in the ESMA public register (Article 64)
Passporting notification
As neededNotify home NCA to provide services in other EU Member States (Article 65)
Frequently Asked Questions
What is CASP authorisation under MiCAR?
CASP authorisation is the process by which a legal person obtains a licence from a national competent authority (NCA) to provide crypto-asset services in the EU under the Markets in Crypto-Assets Regulation (EU) 2023/1114. Title V, Article 63 sets out the authorisation requirements. Without authorisation, entities may not provide crypto-asset services such as custody, trading, exchange, or advisory services after the transitional period ends on 1 July 2026.
Who needs CASP authorisation?
Any legal person or undertaking that wishes to provide crypto-asset services professionally in the EU needs CASP authorisation, unless they fall within a specific exemption. Credit institutions (under CRD/CRR) and MiFID investment firms can provide certain crypto-asset services by notifying their NCA — they do not need a separate CASP licence. Entities already authorised under national crypto regimes may benefit from transitional provisions until 1 July 2026.
How long does the CASP authorisation process take?
Under Article 63(7) of MiCAR, the competent authority must assess the application within 25 working days of receiving it to determine completeness, then has 40 working days from receipt of a complete application to make a fully reasoned decision. In practice, NCAs may request additional information, which pauses the clock. Applicants should budget 3-6 months for the full process including pre-application engagement and any supplementary requests.
What are the capital requirements for CASP authorisation?
Article 67 of MiCAR sets minimum own funds requirements based on the type of services: EUR 50,000 for custody and administration, advice, transfer, and reception/transmission of orders; EUR 125,000 for exchange against funds or other crypto-assets, and execution of orders; EUR 150,000 for operating a trading platform. CASPs must also maintain own funds equal to at least one quarter of the preceding year's fixed overheads, if that amount is higher.
Can existing crypto firms continue operating during the transition period?
Yes. Article 143 of MiCAR provides transitional arrangements. Entities that were providing crypto-asset services under applicable national law before 30 December 2024 may continue to do so until 1 July 2026, or until their MiCAR authorisation application is granted or refused, whichever comes first. Member States may choose not to apply this transitional period or to shorten it. Firms should check their national transposition rules.
Does CASP authorisation grant EU-wide passporting rights?
Yes. Under Article 65, once authorised in one Member State, a CASP may provide services across the entire EU and EEA through a notification procedure. The home NCA notifies the host NCA, and the CASP can begin providing services in the host state. This EU passport is one of the key advantages of MiCAR authorisation compared to the previous patchwork of national licensing regimes.
What happens if a CASP application is refused?
Under Article 63(10), the competent authority must provide a fully reasoned decision when refusing an application. Common grounds for refusal include inadequate governance arrangements, insufficient own funds, unfit management, or deficient AML/CFT policies. Applicants have the right to appeal the decision. They may re-apply once the deficiencies identified in the refusal have been remedied.
What is the difference between MiCAR CASP authorisation and national crypto licences?
National crypto licences (such as the Dutch crypto registration with DNB, or the German BaFin Kryptoverwahrgeschaeft licence) were granted under national implementations of AMLD5. These national licences do not provide EU passporting rights and will cease to be sufficient after 1 July 2026. MiCAR authorisation replaces these national regimes with a single EU-wide framework, granting passporting rights and harmonised consumer protections.
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