CASP (Crypto-Asset Service Provider)
A Crypto-Asset Service Provider (CASP) is any person or entity whose occupation or business is the provision of one or more crypto-asset (also called a digital asset) services to clients on a professional basis, as defined under the European Union's Markets in Crypto-Assets (MiCA) Regulation.
Under MiCA, crypto-asset services include:
- Custody and administration of crypto-assets on behalf of clients
- Operation of a trading platform for crypto-assets
- Exchange of crypto-assets for fiat currency or other crypto-assets
- Execution of orders for crypto-assets on behalf of clients
- Placing of crypto-assets
- Reception and transmission of orders for crypto-assets on behalf of clients
- Providing advice on crypto-assets
- Portfolio management on crypto-assets
- Providing transfer services for crypto-assets on behalf of clients
CASPs operating in the EU must obtain authorization from the relevant competent authority and comply with MiCA's regulatory requirements, including organizational, prudential, and conduct of business rules designed to protect consumers and maintain market integrity.
Why it Matters
The CASP designation is critical for establishing regulatory clarity in the digital asset industry across the European Union. By defining who must be authorized and what activities require oversight, MiCA creates a standardized framework that protects consumers from fraud and operational failures while fostering innovation.
For businesses operating in the digital asset space, understanding whether they qualify as a CASP determines their compliance obligations, including capital requirements, governance standards, and customer protection measures. This regulatory structure also enhances market confidence by ensuring that only authorized and properly supervised entities can offer digital asset services to EU clients.
