Crypto-asset service provider (CASP)

Under MiCA, a crypto-asset service provider, or CASP, is a legal person whose business is providing one or more defined crypto-asset services to clients. These include operating a trading platform, exchanging crypto for funds or other crypto, custody and administration, executing or receiving and transmitting orders, placing, advice, portfolio management and transfer services.

CASPs must be authorized by a national competent authority, meet capital, governance and fit and proper requirements, segregate client assets, manage conflicts of interest and handle complaints. Authorization can be passported to other EU member states, letting one license cover the single market. Certain regulated firms, such as banks and investment firms, can provide services through a notification process. The broader global term used by the Financial Action Task Force is virtual asset service provider, or VASP.

For allocators, CASP status is a baseline due diligence check when choosing EU counterparties. Example: a custodian obtains CASP authorization in Germany and then serves institutional clients in France and Italy.