Cryptocurrencies have steadily remained popular over the years, and fewer people disagree that the future will also be impossible without them. This becomes especially relevant given the crypto priorities that the 47th president of the USA set instantly after his inauguration. However, the overall predictability of the USA market remains a big question.

The European Union, on its side, also recognizes the importance of cryptocurrencies. It establishes flexible legislation aimed at ensuring thorough transparency at the same time. If you wish to enter a more predictable European market with your crypto project, you should be aware of some new legal developments. Recently, the Markets in Crypto-Assets Regulation (MICA) has been enforced. Among others, it envisages a pretty good development – the  CASP license, which is a universal authorization to operate across the European Union. 

Yes, once you get this license in one EU Member State, you are authorized to offer your crypto products and services across the entire EU. This opportunity sounds extremely good yet there are specific regulatory requirements to follow. We will review its nuts and bolts in this article. 

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What Is CASP under the MiCA?

The MiCA is the new European regulation that came into force in 2025. It has significantly upgraded the previous crypto regulations by redefining compliance rules, bolstering customer protection, and fostering innovations in the Fintech sector. 

The major purpose of the MiCA is to establish transparent compliance requirements for subjects issuing and trading crypto assets. In the end, customers will be more protected from different types of fraud, scams, and possible unexpected outcomes. For this purpose, crypto businesses are obliged to ensure transparent communication and offerings in the market. 

Under these terms, the CASP license is a special authorization for market subjects to issue, exchange, and/or carry out crypto asset management. Obtaining this authorization is not limited to confirming the overall subject’s transparency. 

This is also a single opportunity to enter the European market legally. Yes, this market is fruitful yet demanding. If you want to offer your crypto products and/or services in the European Union and need professional assistance with getting the CASP license, Fintech Harbor lawyers possess vast expertise with the issue and are ready to help in your case. There are many points to deal with in this context.

The MiCA establishes very clear but strict requirements for the CASP holders. Among others, here are its major highlights:

  1. The authorization application process, including the must-have content requirements, how applications are reviewed and decisions are made, the grounds for rejection, the general powers of the regulatory authorities, etc.
  2. Transactional obligations for the CASP holders. This aspect covers the CASP holder’s internal and external operational standards. First, it has to disclose the information about the crypto services and products to the customers in full. The authorized provider also has to cover such aspects as disclosure of inside information, detection and prevention of insider trading, and other cases of market manipulation. 
  3. Infrastructure obligations for the CASP holders. Naturally, the subjects who plan to operate under the MiCA need to implement workable internal systems, procedures, and control measures to monitor and identify potentially risky transactions and prevent possible security incidents. 

What Covers CASP Authorization?

If you plan to offer one or more types of crypto products/services in the European market, you 100% need to get the CASP license in these cases:

  • carrying out custody and administration of crypto assets on behalf of their owners;
  • running a crypto trading platform;
  • dealing with crypto exchange operations of crypto assets for funds/other crypto assets;
  • placing of crypto assets;
  • fulfilling orders for crypto assets on behalf of the customers;
  • processing and transmission of orders for crypto assets on behalf of their owners;
  • rendering advisory services regarding crypto assets;
  • managing crypto asset portfolios;
  • carrying out transfer operations with crypto assets on behalf of the owners.

Contact professional attorneys if you need a more precise assessment of the crypto products and services you plan to offer across the European market and whether they fall under the MiCA regulation. 

Key Obligations of the CASP Holders

During their operations, the CASP subjects are obliged to follow strictly the set of MiCA rules:

  1. EU Presence. This is a must-have requirement for the CASP. In addition to having a physical office within the EU territory, the future CASP holder needs to have at least one director residing in the EU.
  2. Professional conduct. The CASP holders must always act fairly, honestly, and professionally with their customers, regulators, and other market operators. The best interests of customers are the top priorities for any CASP holder. 
  3. Ownership transparency. Aside from disclosing the list of shareholders, the CASP holder also needs to be transparent about its end beneficiaries. If the following changes in ownership exceed the regulatory threshold, the CASP holder is obligated to file a change-of-control notification with the regulator. 
  4. Capital requirements. Since deals with crypto assets are deemed risky, the MiCA sets the minimal capital requirement for the CASP holders. It is actually not too small, starting from €50,000.
  5. Management standards. All managers hired by the CASP holder need to have excellent reputations and possess must-have knowledge, skills, and expertise to fulfill their obligations under the MiCA.
  6. Policies and procedures. The CASP holder must develop and integrate into its daily operations policies to prevent, identify, and disclose conflicts of interest and possible violations, as the case may be. 

Bottom Line

The European Commission’s most recent development, aimed at ensuring maximal flexibility and transparency in the crypto market, has been embodied in the MiCA. This brand-new standard allows providers to operate across the EU once they are licensed in one Member State only.

For this purpose, the MiCA introduces the CASP license for a certain scope of deals and services involving cryptos. The CASP holders must also comply with and adhere to strict legal requirements. 

Apart from the MiCA, the European Commission has also implemented several regulations establishing tech, informational, and other standards for those subjects seeking to become authorized CASP holders. If you need detailed guidance and assistance in this case, do not hesitate to contact professional attorneys.