Enter the European Crypto Market With a CASP License
What Is a CASP License Under MiCA
The CASP license sits at the centre of MiCA's regulatory architecture. MiCA — which entered full application in December 2024 — establishes a single licensing regime for crypto asset service providers across all 27 EU member states. A company that holds a valid CASP authorisation in one member state can passport its services into the others without applying separately in each country. That's the core commercial logic behind the framework.
The authorisation is granted by the national competent authority of the member state where the applicant is incorporated. Once issued, it carries EU-wide recognition — a meaningful structural advantage over pre-MiCA national registrations, which were jurisdiction-specific and non-portable.
Crypto Services Allowed Under a CASP License
MiCA defines the permitted activity categories precisely. A CASP license covers:
- Operating a crypto-asset trading platform
- Exchanging crypto-assets for fiat currency or other crypto-assets
- Executing orders for crypto-assets on behalf of clients
- Placing crypto-assets (distribution to the public on behalf of issuers)
- Receiving and transmitting orders for crypto-assets
- Providing transfer services for crypto-assets on behalf of clients
- Providing safekeeping and administration of crypto-assets on behalf of clients
- Providing portfolio management of crypto-assets
Each of these is a distinct regulated activity. A company must specify which services it intends to provide — the authorisation covers only those activities listed in the approved application.
What a CASP License Doesn't Cover
A CASP license does not permit the provision of investment services in traditional financial instruments — meaning a holder can't arrange transactions in equities, bonds, or derivatives without a separate MiFID II authorisation. The two frameworks are distinct: MiCA governs crypto-asset services, while MiFID II governs conventional financial instruments. Holding a CASP authorisation does not satisfy MiFID II requirements, and a company that attempts to offer both categories of service under a single CASP authorisation would be operating outside its licensed scope.
How It Compares Globally
In the United Kingdom, the comparable authorisation is cryptoasset registration under the Financial Services and Markets Act 2000, regulated by the Financial Conduct Authority (FCA). The scope differs in that the UK regime currently focuses on AML and KYC registration rather than a full activity-based licence, but the underlying activity — providing crypto-asset services to retail and institutional clients — is regulated on similar principles. In Singapore, the equivalent is a Major Payment Institution licence under the Payment Services Act, overseen by the Monetary Authority of Singapore (MAS), which covers digital asset services including exchange and transfer functions.
Why Crypto Companies Are Transitioning to CASP Licensing
Key Benefits of Obtaining a CASP License
The shift toward CASP licensing reflects a straightforward commercial reality: EU crypto regulatory compliance under MiCA is now the price of entry for serving European clients at scale. The specific advantages include:
- EU passporting — one authorisation, 27 markets
- Institutional counterparty access — regulated entities prefer dealing with other regulated entities
- Client trust — MiCA compliance signals that AML and KYC requirements are met to a defined standard
- Reduced jurisdictional fragmentation — no need to maintain separate national registrations
How CASP Licensing Increases Business Credibility
A CASP license signals to institutional partners, payment processors, and corporate clients that the business operates under a defined regulatory framework with ongoing supervisory oversight. Before MiCA, a virtual asset service provider (VASP) operating under a national registration in one EU country had limited credibility in another. The unified MiCA framework changes that — a CASP authorisation carries the same weight across the bloc.
For companies exploring a VASP license alongside MiCA options, it's worth noting that VASP registration frameworks outside the EU typically don't carry passporting rights and are treated as distinct from CASP authorisation by EU regulators.
Accessing the EU Market Through a Single Regulatory Framework
EU crypto regulation under MiCA consolidates what was previously a fragmented set of national rules into one coherent regime. A company that completes CASP authorisation in Lithuania, Poland, or Spain gains access to the full EU single market for crypto-asset services — without reapplying in each country where it wants to operate.
Choosing the Right Jurisdiction for Your CASP License
CASP License in Lithuania, Poland, and Spain
Jurisdiction selection matters because national competent authorities differ in processing speed, supervisory approach, and local infrastructure. CASP license in Lithuania applications are handled by the Bank of Lithuania, which has established a structured process for crypto company incorporation and has experience processing MiCA-adjacent applications. CASP license in Poland falls under the Polish Financial Supervision Authority (KNF), which has been building out its MiCA implementation framework since 2023. CASP license in Spain is overseen by the CNMV (Comisión Nacional del Mercado de Valores), which has published detailed guidance on MiCA transition timelines for existing registered entities.
CASP license in the Czech Republic is processed by the Czech National Bank, which has positioned itself as a mid-tier option for companies seeking a stable regulatory environment with reasonable processing timelines.
Emerging Crypto Licensing Jurisdictions Outside the EU
For companies that don't require EU market access, non-EU frameworks remain relevant. CASP license in Panama is not a MiCA-equivalent — Panama operates its own crypto licensing solutions framework under the Superintendency of the Securities Market, covering certain digital asset activities without EU passporting rights. CASP license in Seychelles falls under the Financial Services Authority of Seychelles, which offers a lighter-touch regime suited to companies targeting non-EU markets. Neither replaces MiCA authorisation for EU-facing operations.
Crypto licenses are available across multiple jurisdictions — the right choice depends on the business model, target market, and regulatory requirements.
How to Select the Right Jurisdiction for Your Business Model
The primary variables are: target client geography, speed-to-market requirements, local substance requirements (physical office, local directors), and the supervisory track record of the national authority. A company targeting retail EU clients needs a MiCA CASP authorisation regardless of where it's incorporated. A company targeting non-EU markets has more flexibility — but should verify that its chosen jurisdiction's framework is recognised by its target clients and banking partners.
From Application to Approval: Navigating CASP Licensing
Essential Requirements for CASP Applicants
MiCA sets out a defined set of requirements for CASP applicants. Core requirements include:
- Legal incorporation in an EU member state
- Registered office in the member state of application
- Fit and proper assessment of directors and shareholders
- Minimum own funds — the threshold varies by service category (ranging from €50,000 to €150,000 depending on the services applied for)
- AML and KYC programme aligned with FATF Recommendations 10 and 11 (customer due diligence and record-keeping)
- Governance and internal controls documentation
- Custody and safekeeping arrangements where applicable
- White paper for any crypto-assets issued or offered
The application is submitted to the national competent authority, which has up to 40 working days to assess completeness and a further period to reach a decision.
Factors That Influence Licensing Costs and Timelines
Costs vary by jurisdiction and service scope. State fees, legal preparation, local substance setup, and compliance infrastructure all contribute. Timelines depend on the national authority's processing capacity and the completeness of the application at submission. Incomplete applications restart the clock. Verify current requirements with qualified professionals before committing to a jurisdiction.
Regulatory Compliance After Receiving a CASP License
Authorisation is the starting point, not the finish line. Ongoing MiCA compliance requirements include periodic reporting to the national competent authority, maintenance of own funds thresholds, annual AML programme reviews, incident reporting obligations, and client disclosure requirements. A company that fails to maintain compliance risks suspension or withdrawal of its authorisation.
For companies evaluating a crypto exchange license specifically, the exchange-related activity categories under MiCA carry their own ongoing obligations around market integrity, order book transparency, and client asset segregation.
What Is the Next Step?
The platform provides information on CASP licensing options, jurisdiction comparisons, and available assets across the regulated crypto space. Founders and buyers review the available information and make their own decisions about structure, jurisdiction, and timing. All decisions rest with the client — the platform introduces, informs, and connects.
This page is for informational purposes only. It does not constitute legal, financial, or regulatory advice. Readers should consult qualified professionals before making any decisions.