CASP Licence, Europe
Crypto-Asset Service Provider

Introduction

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The regulation of cryptocurrency businesses in the European Economic Area (EEA) is undergoing significant change, with Crypto-Asset Service Providers (CASPs) now required to obtain a CASP licence to operate legally. Under the Markets in Crypto-Assets Regulation (MiCA), all businesses providing crypto exchange services, wallet custody, token issuance, and related crypto-asset financial services must comply with strict regulatory standards, ensuring investor protection, financial stability, and anti-money laundering (AML) compliance.

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With MiCA passporting rights, a business licenced as a CASP in one EU member state can operate across all 27 EU countries without needing additional authorisations. This creates a seamless framework for crypto businesses to scale across Europe, eliminating regulatory fragmentation and improving market access, institutional trust, and operational stability.

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CASP Licence Overview

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A CASP licence is a legal requirement for any company offering crypto trading, custody services, brokerage, stablecoin issuance, or investment platforms in the European Union. MiCA replaces the individual national authorisation regimes that previously existed, introducing a single, harmonised compliance framework across the EU.

 

Key CASP compliance obligations include:

• AML and CTF Compliance: Businesses must implement know-your-customer (KYC) verification, transaction monitoring, enhanced due diligence, and suspicious activity reporting to comply with EU AML directives.

• Stablecoin Issuer Requirements: Companies issuing asset-referenced tokens (ARTs) and e-money tokens (EMTs) must maintain fully backed reserves and adhere to strict redemption policies. Algorithmic stablecoins without clear asset backing are prohibited under MiCA.

• Market Integrity and Consumer Protection Measures: CASPs must implement market abuse prevention measures, insider trading controls, and risk disclosure policies to protect investors and prevent fraudulent activities.

• Operational and Financial Stability Requirements: CASPs must maintain strong corporate governance structures, risk management policies, and cybersecurity frameworks to ensure operational resilience.

 

Without a CASP licence, businesses will be unable to legally offer crypto-asset services, secure partnerships with banks and financial institutions, or onboard institutional investors.

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Where to Obtain a CASP Licence in Europe

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Although MiCA applies across all EU member states, businesses must obtain their CASP licence from a specific jurisdiction. The choice of country can impact licencing costs, processing times, and ongoing compliance obligations.

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• France: The AMF (Autorité des Marchés Financiers) requires strict AML registration and comprehensive regulatory compliance, making France one of the most heavily regulated crypto markets in the EU.

• Germany: The BaFin (Federal Financial Supervisory Authority) mandates a crypto custody licence, with high capital requirements and complex compliance standards.

• Lithuania: The Bank of Lithuania offers one of the fastest and most cost-effective CASP licencing processes, making it an attractive choice for crypto startups and payment service providers.

• Estonia: Previously a leading crypto hub, Estonia now imposes stricter AML rules, requiring businesses to maintain a local presence and meet enhanced compliance standards.

• Malta: The MFSA (Malta Financial Services Authority) provides a detailed CASP licencing framework, attracting businesses seeking long-term regulatory certainty.

 

Once MiCA is fully implemented, CASPs licenced in any EU country will benefit from full passporting rights, allowing them to operate across all 27 EU member states without requiring multiple licences.

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Step-by-Step Process to Obtain a CASP Licence

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The CASP licencing process typically takes between six months to a year, depending on the jurisdiction, business model, and regulatory complexity.

 

Step 1: Select the Licencing Jurisdiction
Choosing the most suitable EU country based on business needs, compliance costs, and licencing timelines.

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Step 2: Prepare and Submit the Application
Submission of a business plan, AML/CTF compliance framework, corporate governance policies, and financial statements to the chosen regulatory authority.

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Step 3: Fit and Proper Test
Regulators conduct background checks on company directors, compliance officers, and key stakeholders to ensure financial integrity and experience in financial services.

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Step 4: Regulatory Review and Due Diligence
Regulatory bodies assess financial stability, AML compliance, risk management frameworks, and operational security. Some jurisdictions require on-site inspections before approval.

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Step 5: Licence Approval and Issuance
Once the business meets all MiCA regulatory requirements, the CASP licence is issued, allowing full EU market access under passporting rights.

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Step 6: Ongoing Compliance and Reporting
CASPs must maintain AML reporting, financial audits, transaction monitoring, and cybersecurity risk management to ensure continuous MiCA compliance.

 

 

How Buckingham Capital Consulting Can Help

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Buckingham Capital Consulting is a specialist regulatory advisory firm with expertise in CASP licencing, EU crypto compliance, and financial risk management. With over 15 years of experience, we assist businesses in securing their CASP licence efficiently, ensuring full compliance with MiCA and national regulatory requirements.

 

Our services include:

• CASP Licencing Advisory: Guidance on jurisdiction selection, licencing strategy, and compliance frameworks.

• Regulatory Application Preparation: End-to-end support in preparing and submitting CASP licence applications, including AML/CTF policies and governance documentation.

• Regulatory Due Diligence and Interview Support: Advisory for regulatory assessments, fit and proper tests, and compliance audits.

• Ongoing Compliance and Risk Management: Ensuring businesses maintain AML reporting, financial audits, and cybersecurity frameworks post-licencing.

 

 

Start Your CASP Licence Application Today

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Navigating the CASP licencing process can be challenging, but with the right expertise, your business can secure regulatory approval and operate legally across Europe.