Spotlight: MiCA CASP licence

The Markets in Crypto Assets Regulation (MiCA) introduces a formal licensing regime for crypto-asset service providers (CASPs) across the EU. The CASP licence sets regulatory expectations for trading platforms, custodians, exchanges, and other intermediaries.

As of 30 December 2024, MiCA went into full effect, making the licensing and regulatory requirements an obligation for firms offering crypto-asset services. As such, National Competent Authorities (NCAs) can now review and authorise applications under a harmonised EU wide framework.

This article outlines the CASP licence’s scope, key authorisation requirements, and offers some practical insights for firms seeking to apply.

What is the CASP licence under MiCA?

MiCA defines a CASP as any firm that provides one or more crypto-asset services to clients on a professional basis, and that is authorised to do so under Article 59 of MiCA.

The licence applies to a wide range of business models, from exchanges and custodians to portfolio managers and brokers. It formalises expectations around governance, transparency, risk controls, and consumer protection, moving the crypto industry closer to regulatory parity with traditional financial institutions.

The following activities fall within the CASP licence scope, as defined under Articles 3 and 63 of MiCA:

• Custody and administration of crypto-assets on behalf of third parties

• Operating trading platforms for crypto-assets

• Exchange of crypto-assets for fiat currencies or other crypto-assets

• Execution and transmission of orders on behalf of clients

• Placement of crypto-assets (e.g., marketing token offerings)

• Providing crypto-asset advice or portfolio management

A CASP licence is mandatory for any firm providing these services to users within the European Economic Area. As such, firms must establish a legal presence within the EU and undergo a full authorisation process. The broad scope ensures that all relevant market participants, are subject to common prudential and conduct standards.

What the licence does not cover

While MiCA introduces a comprehensive framework for most crypto-asset services, certain activities fall outside the scope of the CASP licence:

• Non-fungible tokens (NFTs) that are unique and not interchangeable. However, NFTs issued in large collections, or those with fungible features, can fall under MiCA depending on how they are structured and used.

• Central Bank Digital Currencies (CBDCs) and digital assets issued by public authorities when acting in their official capacity.

• Decentralised finance (DeFi) protocols and systems without an identifiable legal issuer or intermediary.

• Issuance of stablecoins (Asset-Referenced Tokens or E-Money Tokens), which is regulated separately under MiCA’s specific provisions for ARTs and EMTs.

Overlap with other regimes

Holding a CASP licence does not exempt a firm from other EU frameworks, such as PSD2 for payment services or MiFID II for financial instruments. However, for firms already licensed under MiFID II, many governance, capital, and conduct requirements align with CASP obligations—allowing for a smoother and faster extension of their compliance framework.

For firms with existing virtual-asset licences outside the EU, the CASP licence offers a single, harmonised standard for operating across all EU member states. Firms licensed in the UK, Switzerland, or Gibraltar already operate under internationally recognised AML/CTF frameworks, which can be mapped to MiCA requirements. In most cases, only targeted enhancements—such as EU-wide “travel rule” transaction reporting and specific governance measures under Articles 62–63—are needed to achieve full compliance.

Key requirements for authorisation

To obtain a CASP licence, firms must undergo full authorisation by an NCA in an EU member state. While local processes may vary slightly, MiCA establishes baseline requirements that include:

• A legal presence in the EU

• Fit and proper assessments for senior management and board members

• Robust governance arrangements, including clear reporting lines and risk management frameworks

• Safeguarding requirements for client crypto-assets, including custody protocols and segregation of client funds

• Capital requirements proportionate to the scale and complexity of services offered. These range from €50,000 to €150,000 depending on the services provided

• AML/CTF compliance, including internal policies and ongoing transaction monitoring

The authorisation process is designed to be comprehensive as per Article 63.

NCAs are required to:

• Confirm application completeness within 25 working days

• Conduct a full assessment within 40 working days

• Make a final decision within 5 months (total statutory maximum), provided all documentation is in order.

Applicants should expect to provide detailed plans covering:

• Governance and ownership structure;

• IT systems and operational processes;

• Internal controls and risk management; and

• outsourcing arrangements (if any).

Transitional arrangements

Under Article 143(3) of MiCA, entities already providing crypto-asset services before 30 December 2024 may continue operating up to 1 July 2026, or until authorised or refused CASP status—whichever is earlier. However, Member States may shorten this transitional period (e.g., Italy, France and Germany have reduced it to six months).

Firms that qualify under transitional provisions can maintain business continuity and preserve early market access while their CASP application is processed—provided their service scope is strategically aligned with their transitional permissions.

Why MiCA authorisation matters

MiCA is a landmark regulation for crypto businesses, it offers regulatory clarity, cross-border consistency, and a path to long-term credibility in the European market. With CASP authorisation, firms receive access to more than 27 markets in the EU under one licence, with consistent regulatory standards.

CASP status can be a market differentiator—bolstering institutional confidence, improving investor readiness, and strengthening credibility in the EU and globally.

How we can help

At Braithwate, we guide fintechs, crypto platforms, and investment firms through every stage of CASP licensing—from scoping and compliance mapping to regulator engagement and launch. Our FintechXpndr (FXp) platform streamlines the process by integrating authorisation workflows and documentation, managing the application process, operational set-up and compliance management all in one place—helping firms get licensed and launched faster, with less friction.

Get in touch to see how FXp can help you navigate MiCA and secure your CASP licence.