Crypto-asset Service Provider (CASP)

According to MiCA, a crypto asset service provider (CASP) can be defined as “a legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59.”

These crypto-asset services include: 

“(a) providing custody and administration of crypto-assets on behalf of clients;

(b) operation of a trading platform for crypto-assets; 

(c) exchange of crypto-assets for funds; 

(d) exchange of crypto-assets for other crypto-assets; 

(e) execution of orders for crypto-assets on behalf of clients; 

(f) placing of crypto-assets; 

(g) reception and transmission of orders for crypto-assets on behalf of clients; 

(h) providing advice on crypto-assets; 

(i) providing portfolio management on crypto-assets; 

(j) providing transfer services for crypto-assets on behalf of clients.”

[Article 3, paragraph 1, points 15 - 16 of MiCAR (Regulation (EU) 2023/1114)]

Additionally, under MiCA, a CASP must be authorised by a national competent authority, e.g., BaFin in Germany, for it to operate.

CASPs are also responsible for complying with MiCA’s rules on governance, safeguarding client assets, and preventing market abuse. 

In summary, if a business provides any of the following services to citizens in Europe, it is deemed a CASP: 

• offering custody and administration of crypto assets on behalf of a third party,

• offering a crypto exchange service or running an exchange,

• offering crypto advisory services, or information defined as advice on investing in crypto assets. (This does not include portfolio management services.)

Read more about CASPs here.