Understanding CASP License in the EU (2025)
A CASP License in the EU is the official authorization allowing Crypto-Asset Service Providers (CASPs) to operate regulated crypto services across Europe. Under MiCA (Markets in Crypto-Assets Regulation), CASPs include companies offering custody, trading platforms, crypto-fiat and crypto-crypto exchange, portfolio management, advice, order execution, and transfer of crypto-assets.
Essentially, a CASP License in the EU enables firms to operate under a unified regulatory framework, ensuring compliance and investor protection while offering services across EU/EEA countries.
Why a CASP License Is Mandatory
MiCA requires nearly all commercial crypto-asset services to obtain authorization. The regulation ensures:
- Investor protection and market integrity
- Robust AML/CTF compliance
- Effective governance and internal controls
MiCA also defines rules for asset-referenced tokens (ARTs) and e-money tokens (EMTs), specifying issuer and platform obligations.
Indicative Initial Capital Requirements Under MiCA:
| Service | Capital Requirement |
| Advice; order transmission | €50,000 |
| Portfolio management; execution; placing | €50,000–€125,000 |
| Custody and administration | €125,000 |
| Trading platform; exchange | €150,000 |
CASP Licensing Procedure
Obtaining a CASP License in the EU involves:
- Scoping and Analysis: Map activities to MiCA service definitions.
- Program of Operations: Define governance, staffing, technology, and internal controls.
- Prudential Readiness: Calculate capital and liquidity needs.
- AML/CTF Framework: Implement KYC, transaction monitoring, and Travel Rule compliance.
- ICT and DORA: Prepare security, incident response, and third-party risk policies.
- Pre-Application Meeting: Optional consultation with the regulator.
- Submission: File the application with supporting documentation.
- Review and Decision: Authorities review and approve, enabling EU-wide passporting.
CASP Licensing in Key EU Jurisdictions
| Jurisdiction | Authority | Highlights |
| Poland | KNF | Strong governance and AML focus; well-documented procedures. |
| Lithuania | Bank of Lithuania | Fintech-friendly, efficient supervision, robust DORA alignment. |
| Luxembourg | CSSF | High institutional standards, precise documentation, ideal for cross-border strategies. |
Non-EU Firms and Reverse Solicitation
Non-EU entities must obtain a CASP License in the EU to offer regulated services. Typically, they:
- Establish an EU subsidiary
- Apply for CASP authorization
- Use passporting for pan-European operations
Common Challenges and Solutions
- Capital Planning: Align forecasts with regulatory expectations.
- DORA Compliance: Build ICT governance early.
- Service Definition: Avoid misclassification of crypto services.
- AML/KYC Systems: Implement scalable monitoring tools.
- Group Structure: Maintain clear oversight of outsourcing and intragroup functions.
RUE’s CASP Licensing Support
RUE offers end-to-end support for obtaining a CASP License in the EU, including:
- Trust: Direct representation before KNF, CSSF, and other regulators.
- Convenience: Full readiness assessment within 10 business days.
- Speed: Regulator-ready templates and documentation.
- Quality: Detailed service mapping and governance training.
- Economy: Transparent pricing and reusable documentation across EU jurisdictions.
Conclusion
Securing a CASP License in the EU under MiCA 2025 is crucial for firms seeking regulated crypto-asset operations across Europe. With proper planning, compliance, and support from experts like RUE, crypto businesses can navigate capital, governance, and regulatory requirements efficiently.
