Step-by-Step Guide to Obtaining a CASP License in the European Union

Step-by-Step Guide to Obtaining a CASP License in the European Union

Blog Article

With the introduction of the Markets in copyright-Assets (MiCA) regulation, the European Union has established a formal licensing process for any business providing copyright-asset services. If you intend to operate legally and at scale within the EU, obtaining a CASP (copyright-Asset Service Provider) license is not optional—it’s mandatory. While the process may appear complex, it’s manageable when broken down into specific stages.

Here is a step-by-step guide to help you understand how to apply for and obtain a CASP license under MiCA.

• Assess whether your business qualifies as a CASP
  The first step is understanding whether your activities fall under the CASP definition. MiCA applies to firms involved in services such as copyright exchange, custody wallets, order execution, portfolio management, and advisory services for copyright-assets. Even decentralized platforms with centralized governance or key service elements may be considered CASPs. If your firm operates in any of these areas, MiCA rules apply, and you will need to obtain a license.

• Choose the EU country for registration
  While MiCA creates a harmonized regulatory framework across the EU, the licensing process begins in a single member state where your business will be legally established. You must select a country where you intend to have a physical presence, such as an office or staff. Popular jurisdictions include Estonia, Lithuania, France, Germany, and the Netherlands, depending on your business model and local regulator friendliness.

• Prepare a detailed application dossier
  You will need to submit a comprehensive application to the national competent authority (NCA) of your chosen country. This dossier must include detailed information about your company, including corporate structure, business plan, service offerings, internal control procedures, anti-money laundering (AML) policies, IT infrastructure, and compliance framework. You must also demonstrate financial stability and the qualifications of your management team.

• Implement robust governance and risk frameworks
  MiCA requires CASPs to establish strong internal governance. You must define risk management protocols, compliance monitoring, conflict of interest policies, and a clear chain of command. Your team should include a compliance officer, an AML officer, and a board of directors with relevant financial and technical experience. Adequate segregation of duties and transparent reporting systems are mandatory.

• Meet the capital requirements
  The amount of initial capital required depends on the type of services your firm will provide. For example, copyright custody providers need more capital than advisory-only firms. Minimum capital thresholds range from €50,000 to €150,000. Proof of available capital—through bank statements or audited financial reports—must be submitted with the application. These funds must be fully paid-in and not borrowed or encumbered.

• Establish AML/CTF procedures and register with FIU
  Compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) laws is a major pillar of MiCA. You must design procedures for customer due diligence (CDD), suspicious transaction monitoring, risk profiling, and reporting. You will also need to register with the national Financial Intelligence Unit (FIU) in your selected member state and integrate your AML processes with national databases and reporting tools.

• Demonstrate IT and cybersecurity resilience
  Since CASPs handle digital assets and sensitive client data, your IT systems must meet high security standards. Regulators will expect clear documentation on how you manage access controls, secure private keys, handle backups, and respond to cybersecurity threats. You may be required to conduct regular third-party audits and report any breaches. Data protection policies under the GDPR also apply.

• Undergo regulatory interviews and checks
  Once your application is submitted, the national authority will review your documentation and may request additional information or clarification. Regulatory staff may also conduct interviews with key personnel to evaluate their knowledge, experience, and readiness. Background checks on directors and ultimate beneficial owners (UBOs) are common. Transparency and cooperation at this stage can speed up the review process.

• Receive provisional approval and fulfill final conditions
  If your application meets the requirements, the regulator may issue a conditional or provisional license. At this stage, you might need to meet additional requirements, such as finalizing staffing, securing an office location, or integrating with regulatory systems. Once these conditions are fulfilled, you will receive your full CASP license and be included in the EU-wide registry maintained by the European Securities and Markets Authority (ESMA).

• Begin operations and benefit from passporting rights
  After obtaining your license, you can start offering copyright services within your home country—and, more importantly, across the entire European Union. Under MiCA’s passporting system, you can notify regulators of your intention to operate in other member states without needing separate licenses. This enables fast, scalable growth within one of the largest regulated copyright markets globally.

• Maintain compliance through regular reporting
  Holding a CASP license is not a one-time task. You must maintain compliance through regular reporting, audits, and interaction with your national authority. This includes financial disclosures, AML reporting, transaction monitoring, and updates on business changes. Any breach of MiCA rules could lead to penalties or revocation of the license. Ongoing staff training and periodic policy reviews are strongly recommended.

• Prepare for supervision by ESMA and national authorities
  While national regulators are your first point of contact, the European Securities and Markets Authority (ESMA) will oversee CASPs at a broader level. This includes coordination among member states, publication of guidelines, and maintaining the CASP public registry. Being responsive to both national and EU-level supervision ensures smoother operations and stronger trust among stakeholders.

Securing a CASP license under MiCA is a rigorous process—but one that brings substantial legal, commercial, and reputational benefits. The key to success lies in preparation, transparency, and the establishment of strong internal systems. Businesses that invest in compliance early will enjoy not only smoother licensing, but also greater market access and long-term credibility in the evolving European copyright landscape.

Report this page