🇪🇺European Union (MiCA) · ESMA / National Competent Authorities (NCAs)

CASP Authorization

Authorization to provide crypto-asset services under MiCA Title V with EU-wide passporting rights, covering advisory, execution, custody, exchange, and trading platform operations.

MiCA Regulation (EU) 2023/1114, Articles 59-73, Annex IV

Capital Required

€50,000 (Class 1 advisory/execution), €125,000 (Class 2 custody/exchange), €150,000 (Class 3 trading platform) + 25% quarterly fixed overheads

Timeline

3-6 months

Fees

€3,000-100,000 (varies by member state)

Regulatory Body

ESMA / National Competent Authorities (NCAs)

Legislative Framework

Markets in Crypto-Assets Regulation (MiCA) 2023/1114, Payment Services Directive 2 (PSD2), Digital Operational Resilience Act (DORA)

Last updated: June 2025

Key Requirements

1

Demonstrate minimum capital requirements per MiCA Annex IV corresponding to service class (Class 1: €50,000; Class 2: €125,000; Class 3: €150,000).

2

Implement robust organizational structure with internal controls, compliance function, and separate legal and operational roles.

3

Establish written governance policies covering conflicts of interest, market abuse prevention, and business continuity under DORA Article 6 et seq.

4

Maintain professional indemnity insurance covering at least 25% of quarterly fixed overheads.

5

Implement customer asset segregation procedures and safeguarding arrangements per MiCA Article 72.

6

Adopt comprehensive AML/CFT procedures aligned with 5th EU Money Laundering Directive.

7

Establish independent board representation and maintain documented organizational independence from parent entities.

8

Conduct and document fit-and-proper assessments of management members per MiCA Article 63.

Application Process

1

Prepare application dossier including corporate documentation, business plan, governance structure, and financial projections.

2

Submit pre-notification to National Competent Authority with organization overview and proposed service classes.

3

Provide detailed organizational and operational framework with compliance policies and risk management procedures.

4

Submit evidence of capital adequacy, including recent audited accounts or capitalization commitment letters.

5

Engage with NCA during assessment period (typically 3-6 months) for clarification requests and on-site review.

6

Receive authorization decision and obtain registration in national register with EU-wide passporting notification.

7

Establish operational infrastructure and undergo final compliance verification before commencing business.

Expected Total Timeline

3-6 months

Ongoing Obligations

After obtaining your CASP Authorization, these are the continuing compliance requirements you must maintain.

Maintain capital adequacy per MiCA Annex IV throughout authorization, with quarterly capital calculations.

Submit annual audited financial statements and governance reports to NCA within statutory deadlines.

Report significant operational incidents, market abuse suspicions, and serious compliance breaches within 72 hours.

Conduct annual review of governance, internal controls, and DORA operational resilience framework with Board approval.

Notify NCA of material changes including shareholder composition, management changes, and service expansion within 30 days.

Participate in regulatory stress testing and periodic risk assessments conducted by NCA.

Maintain professional indemnity insurance at minimum 25% of quarterly fixed overheads with continuous coverage.

Cost Summary

Capital Requirement

€50,000 (Class 1 advisory/execution), €125,000 (Class 2 custody/exchange), €150,000 (Class 3 trading platform) + 25% quarterly fixed overheads

Application & Licensing Fees

€3,000-100,000 (varies by member state)

Jurisdiction Setup Cost

$40,000-$120,000

Annual: $50,000-$150,000

Need help with CASP Authorization?

Our team manages the full European Union (MiCA) licensing process -from application preparation through post-approval implementation.

The information provided on this website is for general informational purposes only and does not constitute legal, financial, or tax advice. No attorney-client relationship is formed by use of this site. LegalWrapper.io is a product of Enterslice. Content on this site may not reflect the most current legal or regulatory developments. Consult with a qualified legal professional before making any structuring, licensing, or compliance decisions. Regulatory requirements and outcomes vary by jurisdiction and are subject to change. Prior engagements do not guarantee specific regulatory approvals or timelines.