The European Union’s Markets in Crypto-Assets Regulation (MiCA) establishes a unified rulebook for crypto services across 27 member states. At the heart of this framework is the CASP licence (Crypto-Asset Service Provider), which sets common standards for custody, exchange, execution, advisory, and issuance-related services — creating a single, passportable market for compliant operators.
For tokenization and RWA projects, MiCA provides legal clarity on who may provide services, how client assets are safeguarded, what disclosures are required, and which operational controls (AML, IT security, governance) must be in place. This clarity lowers cross-border friction, making Europe one of the most attractive regions for regulated digital-asset businesses.
💡 Key idea: MiCA turns fragmented national rules into a single passport regime: obtain a CASP licence in one EU country, serve clients across the entire Union—provided you maintain harmonized compliance, disclosures, and safeguarding standards.
In this guide, we break down what a CASP licence covers, the core requirements you must meet, the application process, your ongoing obligations, and how MiCA compares with other leading regimes (DASP in El Salvador and VAITOS in Mauritius) for regulated tokenization.
Under MiCA, a Crypto-Asset Service Provider (CASP) is any organization that professionally offers crypto-related services within the European Union. These include exchange, custody, advisory, issuance, and other tokenization-related operations. The CASP regime introduces a unified licensing framework across all EU countries — replacing fragmented national rules and enabling passporting rights throughout the single market.
The purpose of the CASP licence is to establish transparency, consumer protection, and operational integrity for digital asset businesses. Every licensed provider must maintain strong corporate governance, AML/KYC systems, and IT security measures — ensuring alignment between crypto services and traditional financial compliance.
🏦 Custody and Administration
Safekeeping of clients’ digital assets and private keys, including segregation of funds, access control, and recovery procedures.
💱 Exchange Services
Operation of platforms that enable users to trade crypto assets against fiat or other tokens, with transparent pricing and fair execution.
🎯 Execution and Brokerage
Executing or transmitting client orders, including over-the-counter (OTC) and secondary-market transactions for regulated assets.
📄 Token Issuance and Placement
Offering or assisting in the placement of new crypto assets under MiCA’s disclosure regime, including asset-backed tokens and stablecoins.
💬 Advisory and Portfolio Management
Providing investment advice, portfolio management, or analytical support involving regulated crypto assets and RWAs.
🔗 Transfer and Settlement
Facilitating blockchain-based transfers and settlements between client wallets or third parties, ensuring transparent audit trails.
💡 Note: Any company providing these services to EU residents — even if incorporated outside the Union — must obtain authorization from a competent national authority and establish a local entity before offering services in the European market.
Each service type carries distinct operational standards, but all licensed CASPs enjoy a harmonized legal status — allowing them to operate across the EU under a single authorization, supervised by national regulators and coordinated by ESMA.
To obtain a CASP licence under MiCA, applicants must meet a set of organizational, financial, and operational requirements designed to ensure market stability and consumer protection. These standards mirror traditional financial regulation while remaining adaptable to blockchain-based models. Below are the key criteria each applicant must satisfy before authorisation by a national competent authority (NCA).
🏢 Legal Entity & Governance
Applicants must be incorporated within an EU member state and have a transparent governance framework. Board members must demonstrate integrity, relevant experience, and independence in decision-making.
💰 Capital Requirements
Minimum initial capital depends on the service type: • Custody – EUR 125 000 • Exchange – EUR 150 000 • Advice/Brokerage – EUR 50 000 This capital must remain fully paid-up and verifiable at all times.
🧾 AML/CFT & Risk Management
CASPs must implement a complete AML/KYC framework aligned with EU Directive (AMLD5 & 6). This includes client due diligence, risk classification, transaction monitoring, and suspicious-activity reporting.
🧠 Compliance Function
Each CASP must designate a Compliance Officer (MLRO) responsible for internal control, policy updates, and liaison with the national regulator. Regular compliance audits and reporting are mandatory.
🔐 IT Security & Custody Standards
Technical systems must guarantee data integrity, encryption, and continuous service availability. Custody providers must maintain segregated client wallets and implement cold-storage or multi-signature solutions.
📊 Business Plan & Financial Projections
Applicants must submit a detailed business model, market strategy, financial forecasts, and proof of sufficient human and technological resources to sustain operations for at least 12 months post-licensing.
📋 Governance Policies & Documentation
Internal policies covering conflict-of-interest management, outsourcing, record-keeping, and client asset protection must be provided. All materials should be available in English for ESMA coordination.
⚖️ Tip: Preparing a bilingual compliance pack (local language + English) significantly speeds up EU-wide passporting once authorisation is granted. Harmonized templates for AML, governance, and IT controls can reduce regulator queries by up to 40 %.
Meeting these requirements is the foundation for a successful MiCA application. Applicants that demonstrate strong internal control, transparent ownership, and operational readiness are far more likely to secure approval and maintain cross-border credibility across the European digital-asset market.
Obtaining a CASP licence under MiCA involves a structured, regulator-supervised process. Although timelines may vary among EU member states, the procedure typically follows six standardized steps — from initial preparation to final registration in the EU-wide CASP Registry managed by ESMA. Each step requires coordination between legal, compliance, and technical teams to ensure full regulatory alignment.
Pre-Application Consultation
Engage with the National Competent Authority (NCA) to confirm scope, structure, and relevant CASP categories. Early feedback helps identify gaps in compliance documentation and organizational readiness.
Entity Formation & Corporate Setup
Incorporate an EU-based legal entity and appoint directors, senior management, and MLRO/Compliance Officers. Finalize shareholding structure and submit ownership disclosures.
Preparation of the Application Pack
Compile all required materials, including business plan, AML/KYC policies, IT architecture, financial projections, and governance documentation. Ensure bilingual versions (local + English) for smoother ESMA coordination.
Submission to the National Regulator
File the application to the NCA along with proof of capital, fit & proper documentation for key personnel, and internal policy manuals. A formal review period begins upon acknowledgment of receipt.
Regulatory Review & Clarifications
The NCA evaluates operational and financial readiness, requests clarifications, and may conduct interviews with management. The review typically lasts 3–6 months, depending on the complexity of the business model.
Authorisation & EU Passporting
Upon approval, the licence is granted and published in the national and EU-wide CASP Registry. The provider may now offer regulated crypto and tokenization services across all EU member states under a single authorisation.
💡 Tip: Many applicants choose to begin the process in jurisdictions with proactive regulators — such as Lithuania, France, or Estonia — where crypto licensing experience is established and regulator dialogue is more efficient.
Careful preparation at each stage is critical. Incomplete AML policies, missing IT-security documentation, or unclear governance charts can delay or derail approval. A compliant submission not only accelerates the licensing timeline but also builds early trust with European banks, custodians, and institutional investors — essential for scaling regulated tokenization activities under MiCA.
Once authorised, a CASP licence comes with continuous supervisory duties. MiCA places a strong emphasis on governance, consumer protection, and transparency, requiring service providers to maintain high operational standards long after approval. These obligations ensure that the European digital asset market remains stable, resilient, and trustworthy — particularly as tokenization becomes integrated into mainstream finance.
📘 Regular Reporting
CASPs must provide quarterly and annual reports to their National Competent Authority (NCA), summarizing operations, financial status, and risk indicators. These reports are also shared with ESMA for cross-border supervision.
🧾 AML/CFT Monitoring
CASPs are required to perform ongoing KYC verification and transaction monitoring. Suspicious activities must be reported to Financial Intelligence Units (FIUs) in accordance with EU AMLD6 standards.
🔐 IT & Cybersecurity Audits
Annual independent IT security assessments must verify system resilience, data protection, and business continuity. Breach incidents must be reported within 24 hours to the regulator.
👥 Client Asset Safeguarding
Client assets and private keys must remain fully segregated from company funds. CASPs must provide periodic proof of balances, custody segregation, and recovery procedures for all wallet infrastructures.
💬 Disclosure & Transparency
All marketing materials and token offering documents must be fair, clear, and not misleading. CASPs are also required to maintain public access to key policy summaries and risk disclosures.
📊 Fit & Proper Oversight
Directors and senior management must continue to meet “fit and proper” standards. Any material change in ownership, management, or risk profile must be immediately notified to the NCA.
⚠️ Important: MiCA introduces a “public accountability regime” — non-compliant CASPs may be suspended or delisted from the EU CASP Registry. Regulators can impose administrative fines, revoke passporting rights, or order restitution to affected clients.
Compliance under MiCA is not a one-time event but a continuous governance cycle. Licensed providers must actively maintain transparency, cybersecurity, and client protection practices. By integrating compliance into everyday operations, CASPs not only meet regulatory expectations but also strengthen their market reputation and investor confidence across the EU.
MiCA’s CASP licence is not just a compliance requirement — it is a strategic asset for companies building within the European digital asset ecosystem. For tokenization platforms, real-world asset (RWA) issuers, and institutional investors, this framework creates legal certainty and access to one of the world’s largest regulated financial markets. Below are the main advantages that MiCA brings to tokenization businesses.
🌍 EU-Wide Market Access
With a single CASP licence, companies can operate across all 27 EU countries without reapplying in each jurisdiction. This “passporting” mechanism gives tokenization platforms immediate access to millions of potential investors.
Single market🏦 Institutional Credibility
MiCA introduces prudential, governance, and IT standards equivalent to those in traditional finance. Licensed CASPs earn higher trust from institutional players such as banks, funds, and regulated exchanges.
Investor confidence💡 Legal Certainty for Tokenized Assets
MiCA explicitly defines digital assets, including asset-referenced tokens and stablecoins. Tokenization projects can structure offerings under a legally recognized framework with clear investor disclosures.
RWA clarity⚙️ Harmonized Compliance Framework
Instead of managing fragmented national regimes, CASPs follow a single set of EU-wide rules for AML, cybersecurity, and reporting. This reduces administrative costs and accelerates cross-border growth.
Regulatory efficiency📈 Secondary Market Integration
CASPs can collaborate with DLT Pilot Regime operators to enable regulated secondary trading of tokenized securities and funds. This opens new liquidity channels for RWAs and investment-grade tokens.
Liquidity boost🤝 Cross-Border Partnerships
MiCA compliance makes partnerships with EU-regulated custodians, auditors, and fintech providers simpler. Licensed entities are preferred counterparties for institutional onboarding and listings.
Ecosystem integration💡 Insight: MiCA’s CASP framework provides the regulatory foundation that tokenization needs to scale. By embedding investor protection and compliance from the start, projects can attract traditional finance participants — bridging the gap between on-chain innovation and established capital markets.
MiCA transforms Europe into a regulated launchpad for tokenized finance. Platforms that align early with CASP standards gain not only operational legitimacy but also a competitive edge in securing institutional capital, onboarding investors, and participating in Europe’s growing DLT-driven ecosystem.
To understand MiCA’s global position, it’s useful to compare its CASP framework with similar licensing regimes in other jurisdictions — notably DASP (El Salvador) and VAITOS (Mauritius). Each framework sets different priorities: MiCA focuses on investor protection and harmonization across the EU, while DASP promotes innovation with speed, and VAITOS offers flexible structuring for cross-border tokenization.
MiCA (European Union) is coordinated by national authorities under ESMA’s supervision. It is based on the Markets in Crypto-Assets Regulation (2023) and covers services such as custody, exchange, execution, advisory, and issuance. Capital requirements range from EUR 50,000 to 150,000 depending on the activity. Its key focus areas include investor protection, prudential oversight, and cross-border harmonization. MiCA governs utility, asset-referenced, and e-money tokens (excluding securities) and is best suited for large-scale CASPs, institutional RWA projects, and tokenization platforms seeking EU-wide reach.
DASP (El Salvador) is regulated by the CNAD (National Commission for Digital Assets) under the Digital Assets Law (2023). Licence categories include issuance, exchange, custody, advisory, and brokerage. Capital requirements vary from USD 100,000 to 250,000 depending on the service type. The regime’s focus lies in innovation enablement and streamlined licensing for tokenization projects. It covers all digital assets — including RWAs, NFTs, and hybrid tokens — and offers faster onboarding and lighter supervision, making it ideal for startups and emerging platforms.
VAITOS (Mauritius) operates under the Virtual Assets and Initial Token Offerings Services Act (2021), regulated by the Financial Services Commission (FSC). It covers issuers, custodians, wallet providers, and marketplace operators. Capital requirements range between USD 35,000 and 200,000 depending on the licence class. The VAITOS framework balances oversight with flexibility, supporting virtual assets, tokenized securities, NFTs, and stablecoins. It is best suited for fund-linked and cross-border tokenization structures, offering credible regulation combined with tax efficiency.
Each regime reflects a different regulatory philosophy.
The MiCA framework prioritizes harmonization and investor protection, providing long-term reliability and cross-border access — ideal for institutional-grade tokenization but slower in approval.
The DASP regime emphasizes agility and innovation, offering a faster and more cost-effective path for global token issuers.
The VAITOS framework sits in between, combining strong financial supervision with flexibility and international accessibility.
In summary, MiCA defines the institutional standard for regulated tokenization in developed markets, while DASP and VAITOS present alternative routes for agile or globally distributed projects. Together, they form a regulatory landscape that bridges innovation and compliance, driving the global evolution of tokenized finance.
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