In order to protect EU consumers and maintain financial stability within its member states, the European Union created the Markets in Cryptoassets Regulation (MiCA), which refers to CASP licenses. Below, we will learn more about this type of license.
What are CASPs?
CASP (Crypto Asset Service Provider) is a term used to refer to entities, companies, or individuals specialized in offering financial services related to digital assets and cryptocurrencies. Within this group of financial services, we can highlight custody services, crypto payment processors, digital wallets (Wallets), Exchanges, and consulting, among others.
What are CASP licenses?
CASP licenses aim to ensure that Crypto Asset Service Providers (CASPs) comply with the regulations established in the MiCA regulation and that they are authorized to offer services related to crypto assets and digital assets within the European Union.
Who regulates and oversees CASP licenses?
The MiCA regulatory framework states that the regulation, supervision, and granting of CASP licenses is the responsibility of the financial regulatory body designated by each of the European Union member states within their respective jurisdiction. In this way, each national financial authority will regulate and supervise the MiCA requirements within its respective jurisdiction, ensuring compliance with the regulatory framework in a balanced manner throughout the European Union.
How do you get a CASP license?
Crypto Asset Service Providers (CASPs) seeking to obtain an EU CASP license must have a reliable and secure system for handling crypto assets, comply with anti-money laundering laws, implement effective strategies to manage and minimize risks, as well as demonstrate operational transparency through constant and complete disclosure of financial information and transaction records.
The transition period for existing suppliers
As the application process for an EU CASP license can take several months, a transition period has been established for existing virtual asset service providers, ensuring that these providers comply with the new regulations set out in the Markets in Crypto-Assets Regulation (MiCA).
This transition period allows existing providers to continue their operations using existing licenses until mid-2026, by which time the MiCA regulation is expected to have been adopted into local legislation in all EU Member States.
What do you think about this topic? Do you want to know more about the licenses and regulations related to CASPs in the European Union?
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