What is CASP?

Crypto-Asset Service Provider

Why CASP Matters

The CASP designation is central to the EU's approach to regulating the crypto industry. Before MiCA, crypto service providers operated under a patchwork of national regulations — or no regulation at all. The CASP framework creates a unified licensing regime across all 27 EU member states, meaning a provider authorized in one country can passport its services throughout the bloc. This matters because it determines who can legally offer crypto services in one of the world's largest markets. For compliance teams, understanding CASP requirements is essential to market access, operational planning, and risk management.

Regulatory Implications

CASPs face comprehensive regulatory requirements under MiCA, which came into full application in December 2024:

• Authorization: CASPs must obtain a license from their home member state's national competent authority (NCA). The application process requires demonstrating adequate governance, capital reserves, and operational resilience.
• Prudential requirements: Minimum capital requirements vary by service type, ranging from €50,000 to €150,000 depending on the specific crypto-asset services offered.
• Conduct of business rules: CASPs must act honestly, fairly, and professionally, provide clear disclosures to clients, and maintain robust complaint-handling procedures.
• AML/CFT compliance: Full compliance with EU Anti-Money Laundering directives, including the Travel Rule for crypto transfers, customer due diligence, and suspicious transaction reporting.
• Custody safeguards: CASPs holding client crypto-assets must segregate them from proprietary holdings and maintain appropriate custodial arrangements.

How CASP Relates to Compliance Monitoring

Monitoring CASP regulations requires tracking developments across multiple EU institutions (European Commission, ESMA, EBA) and 27 national regulators simultaneously. Regulatory technical standards (RTS) and implementing technical standards (ITS) continue to be developed, meaning the compliance landscape evolves rapidly. RegPulse tracks all CASP-related regulatory updates — from draft technical standards to national transposition measures — ensuring your team never misses a critical change.