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CASP License in the EU

Backed by proven experience in assisting over 300 crypto companies with their authorization in 50+ global jurisdictions, the Fintech Harbor Consulting team will help you obtain a CASP license in the EU in less than 5 months and support you in meeting MiCA’s robust compliance standards. Whether you’re entering the EU market with an already established project or seeking to bring your startup idea to life in the near future, the new regulatory framework guarantees maximum operational clarity and financial security due to the recently enhanced AML and CFT protocols and robust local presence standards of MiCA compliance. Meanwhile, the large diversity of European jurisdictions allows you to choose the right destination that will match your unique business model, budget expectations, taxation system, and authorization efficiency goals. Read further to get a broad perspective on the latest regulatory updates, CASP licensing requirements and costs, and the most business-friendly EU jurisdictions.

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Who Needs a CASP License in the EU?

With the full implementation of the Markets in Crypto-Asset Regulation (MiCA) across the European Union, all existing VASPs in the region had to secure a Crypto-Asset Service Provider (CASP) authorization from their national competent authority to continue providing services legally.

Under this framework, businesses providing services involving virtual assets must obtain a CASP license before operating in the European market. However, when it comes to licensing, crypto activities are divided into three main categories, with the number of permitted services increasing with each class:

Class 1

Conducting client transactions;
Positioning of crypto-assets;
Facilitating orders for others;
Client-focused crypto-asset transfers;
Overseeing client crypto-orders;
Crypto-asset consulting;
Crypto-asset portfolio management.

Class 2

Class 3

What Are the Major Shifts From VASP to CASP?

Aspect	VASP registration	CASP license under MiCA
Regulatory scope	Primarily includes the basic AML and CFT policies.	Robust financial regulation, including AML, operational resilience, market conduct, financial integrity, and client protection protocols.
Geography	Separate authorization in each jurisdiction.	The passporting rights apply to the entire EU so that an entity licensed in one member state is authorized to provide services to clients in any other EU jurisdiction.
Minimum share capital	Varied across jurisdictions and ranges from zero to €125,000.	€50,000 for class 1, €125,000 for class 2, and €150,000 for class 3.
IT and cybersecurity requirements	Basic corporate compliance that depends on the local requirements of a particular jurisdiction, often limited to the basic IT security disclosures.	Requires strict compliance with the Digital Operational Resilience Act (DORA) and involves mandatory external audits and incident reporting.
Client asset protection	Unregulated, with no uniform rules established to ensure client asset segregation.	Highly regulated, with required segregation of client funds and crypto assets in order to prevent misuse or insolvency losses.
Supervisory oversight	Monitored by local Financial Intelligence Units (FIUs) with limited financial market oversight.	Overseen by National Competent Authorities (NCAs) in accordance with ESMA and EBA.
License application timeline and complexity	Often was fast and simple, taking from 1 to 3 months in total with the basic documentation.	Rigorous and in-depth procedure, often taking around 5 months to complete and involving extensive legal, financial, operational, and security documentation.
Current status in the EU	Phased out.	The current standard for all CASPs providing services within the European Union.

Main Requirements and the Mandatory Documentation for CASP Authorization

Before the regulator hands you the CASP license, it’s essential that your business demonstrates full ongoing compliance with the MiCA standards, from establishing the local presence and hiring the key personnel to collecting the complete package of documents and internal policies. Whether you are applying for the CASP license in Germany, Cyprus, Lithuania, Poland, Spain, or any other EU jurisdiction, the MiCA requirements are the same for all European Union states.

Local presence

Legal entity registration in one of the EU member states is required;
Appointment of a resident AML officer (MLRO) is mandatory;
A physical office in the licensing jurisdiction is required, as virtual addresses are no longer accepted;
At least one member of senior management must be a resident in the licensing jurisdiction.

Minimum share capital

Class 1 (client transactions, positioning of crypto-assets, order facilitation, consulting, and portfolio management): €50,000;
Class 2 (all services covered in class 1 plus custody, cryptocurrency exchange, and administration of crypto-assets on behalf of clients): €125,000;
Class 3 (services permitted under classes 1 and 2 plus operation of trading platforms for crypto-asset services): €150,000.

Required documentation

Resumes of directors and beneficiaries;
Detailed outline of the company’s governance structure;
Documents associated with the IT systems and security measures;
Confirmation of the company’s compliance with statutory requirements;
Documents outlining the relations with subsidiaries;
Notification of cross-border activities;
Business continuity plan;
Information on the provision of cross-border services.

Mandatory internal policies

Client crypto-asset protection policy;
Risk assessment;
Conflict of interest prevention policy;
Internal control policy;
Anti-Money Laundering (AML) policy;
ICT security policy;
Client complaints handling policy;
Pricing policy;
Whistleblowing policy;
Outsourcing management policy;
Insurance policy;
Custodial services storage and administration policy.

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Which EU Countries Are Best for Issuing a CASP License?

While MiCA provides a unified, robust legal framework across all EU member states, choosing the right jurisdiction among 27 countries to establish your legal entity is a crucial step that requires a strategic approach. The destination you select will impact your licensing timeline, setup and operational fees, corporate tax obligations, local presence requirements, and a particular regulatory authority overseeing your daily operations. Therefore, the authorization steps required to obtain the CASP license in Switzerland will be significantly different from the registration procedure associated with the CASP license in the Czech Republic, for instance. Since each destination comes with its unique benefits and potential flaws, take a closer look at the most popular jurisdictions where more and more CASPs choose to anchor their crypto projects:

Jurisdiction	National regulatory authority	Corporate taxation	Notable benefits
Lithuania	Bank of Lithuania	15% corporate tax	• Highly developed fintech infrastructure; • Smooth banking and EMI integration.
Cyprus	Cyprus Securities and Exchange Commission (CySEC)	12.5% corporate tax	• Smooth transition framework from local VASP guidelines to MiCA CASP authorization; • Friendly business environment based on English common law legal principles.
Poland	Polish Financial Supervision Authority (KNF)	19% standard corporate tax, with the reduced 9% tax available for small or new entities	• Cost-effective entity incorporation and office setup; • Large talent pool of Web3 developers, IT engineers, and AML specialists; • Immediate access to a large domestic market in addition to the standard EU passporting rights.
France	Financial Markets Authority (AMF) / ACPR	25% corporate tax	• High institutional credibility due to the country’s pioneering PSAN regime; • Prestige among European institutional partners; • Strong consumer and investor trust across multiple Western European markets.
Germany	Federal Financial Supervisory Authority (BaFin)	30% corporate tax	• Exceptional regulatory reputation that increases international institutional trust; • Access to Europe’s largest economy; • Reputable destination for security and banking digital asset operations.
The Netherlands	Dutch Authority for the Financial Markets (AFM) / Dutch Central Bank (DNB)	The standard rate is 25.8%	• Reputable financial regulator with structured, clear, and consistent authorization guidelines; • Highly innovative digital infrastructure; • Well-regulated operational environment for enterprise exchange and institutional platforms.
Bulgaria	Financial Supervision Commission (FSC)	10% flat corporate tax	• Cost-effective office setup and company incorporation; • The lowest corporate tax rate among all EU member states besides Hungary; • Business-friendly and accessible gateway for launching a MiCA-compliant EU venture.

CASP Authorization Timeline

How long does it take to register your company in one of the EU states and secure the CASP license? The answer depends on several critical factors, including, first of all, the complexity of your business model and the scope of services you plan to provide. The more complex the corporate structure is, the more time is needed to ensure the compliance of your company and confirm the expertise of each member of your senior management with corresponding documentation.

Another key factor that determines the duration of CASP licensing is how proactively you respond to the local regulator’s requests while your application is being reviewed. For instance, if you are obtaining your CASP license in the Czech Republic, your authorization will be processed by the Czech National Bank (ČNB), which acts as the country’s main national competent authority. Thus, while the ČNB is examining your application, it’s crucial to proactively communicate with them and provide the requested information or additional paperwork.

And yet, on average, given that the application goes by the best-case scenario, the MiCA authorization, backed by our CASP license services, takes under 5 months. This timeframe includes three major phases: the initial consultation and compliance assessment, which takes roughly 2 weeks to 2 months; the document preparation and submission, taking from 1 to 3 months; and the application processing and finalization.

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Costs Associated with CASP Licensing

When planning your CASP authorization, a critical question is: How much does it cost to obtain the license? The short answer is, the exact price list is unique for each case. The prices vary from one jurisdiction to another and depend on a range of factors, including the scope of services you plan to offer, the compliance costs, the local presence fees, the preparation of documents, and others. Also, the choice of your licensing jurisdiction will impact the final price list. For instance, the cost of a CASP MiCA license in Portugal 2026 significantly differs from that of the more affordable CASP license in Bulgaria.

However, the overarching principle that remains the same for all crypto projects is that the total cost consists of two distinct parts: the one-time, first-year fees and the post-licensing expenses. Below is an overview of both of these categories of payments:

1. First-year fees

The standard expenses related to registering a new company and obtaining the license include:

The additional expenses, not covered by the standard first-year service fee, include the following:

2. Post-licensing legal maintenance

Once the license is issued, the authorization process enters the legal maintenance phase, where the entity must renew the license annually and maintain ongoing compliance. The major expenses at this point are associated with:

Regulatory inquiries management;
Banking compliance support;
B2B contract review;
Website legal updates;
HR and contractor documentation;
Local AML officer onboarding;
Bank account opening assistance;
EMI account setup for C2B or B2B transactions;
Office space and local office setup;
Liquidity provider account opening;
Onboarding with AML and KYC tech providers;
Preparation of website policies;
Assistance with Payment Service Provider (PSP) solutions.

To calculate the total cost of your CASP license in your selected jurisdiction, it’s highly recommended to cooperate with a team of trusted legal consultants. They will help you estimate the compliance, local presence, key management, documentation, and other mandatory expenses related to both obtaining and maintaining your license.

Legal insights provided by

Nick Dakhovskyi

Senior Lawyer

Anastasia Kutniakova

Lawyer

FAQ

What is a CASP license in the EU?

The Crypto-Asset Service Provider license, or more commonly the CASP license, is the unified authorization that allows crypto businesses to operate in all European Union states under the Markets in Crypto-Assets (MiCA) regulation. What this recently implemented framework does is replace the former fragmented national regulations with harmonized, EU-wide guidelines in order to enhance legitimacy and customer trust in the dynamic crypto market. Also, one of the main factors that attract thousands of crypto businesses to launch their operations under MiCA is the passporting right, which allows you to provide your services across the entire EU market under a single license. Thus, once you obtain a CASP license in Spain, Poland, or another European jurisdiction, you are authorized to serve the vast community of clients in any other EU destination.

What does CASP stand for under the MiCA regulation?

The CASP abbreviation stands for Crypto-Asset Service Provider. According to MiCA’s definition, a CASP refers to any legal entity providing one or more crypto services to third parties on a professional basis. In other words, if a business performs crypto-asset exchange or runs a trading platform, it is considered a CASP and, therefore, must be legally authorized under MiCA and shielded by a crypto license in order to legally provide services within the EU.

Who needs a CASP license in Europe?

The main factor defining whether your company needs a CASP license is the place of residence of your clients. Namely, if your customers reside within the member states of the EU, your operations must be authorized under MiCA with a CASP license. This applies to crypto companies that offer any of the following services:

Crypto exchange;
Virtual-currency transfers;
Currency storage on behalf of clients;
Custody;
Tokenization;
DeFi platform development and operation;
Advisory services related to crypto investments;
NFT issuance and trading;
Lending and borrowing with crypto assets;
Stablecoin issuance and management;
Portfolio management;
Facilitating orders for others.

What crypto services require CASP authorization?

Under MiCA, the European CASPs fall into three categories based on the range of services they provide. The permitted operations increase with each class, according to Annex IV of the MiCA regulation:

Class 1

Conducting client transactions;
Positioning of crypto-assets;
Facilitating orders for others;
Client-focused crypto-asset transfers;
Overseeing client crypto-orders;
Crypto-asset consulting;
Crypto-asset portfolio management.

Class 2

All services specified in class 1;
Providing custody and administration of crypto-assets on behalf of clients;
Exchange of crypto-assets against funds;
Exchange of crypto-assets against other crypto-assets.

Class 3

All services permitted under classes 1 and 2;
Trading platform for crypto-assets services.

Which EU countries issue CASP licenses?

All 27 EU member states issue MiCA-compliant crypto licenses through their National Competent Authorities (NCAs). For example, if you are applying for the CASP license in Lithuania, the relevant regulator is the Bank of Lithuania; for the CASP license in Cyprus, the competent authority is the CySEC, and so on. Once authorized in any of the EU jurisdictions, your license can also be passported to operate in all other EU member states without requiring separate licenses for each destination.

What are the main requirements for obtaining a CASP license?

To qualify for the CASP authorization, the applicant company must meet the following requirements:

Minimum share capital

Class 1: €50,000;
Class 2: €125,000;
Class 3: €150,000.

Company registration: A legal entity must be incorporated in one of the EU member states;
Local presence: A physical office in the licensing jurisdiction is mandatory, as virtual addresses are no longer accepted;
Required documentation: Preparation of all mandatory internal policies, risk management strategies, and personal documentation for the key hires and directors;
Key personnel: A resident AML officer and at least one resident member of senior management are required to ensure regulatory compliance.

How long does it take to obtain a CASP license in the EU?

The exact duration of the CASP licensing process is highly specific to each application due to factors such as the complexity of a particular case, the range of services intended, the accuracy of paperwork, etc. The choice of the licensing jurisdiction also impacts the duration of MiCA authorization, as each EU member state has its national regulatory authority with its internal administrative procedure. For instance, the process of obtaining the CASP license in Portugal may be faster than applying for the CASP license in the Netherlands, depending on the operational guidelines and capacity constraints of the licensing authority.

However, on average, the MiCA licensing takes under 5 months, given that the submitted documentation is complete, proper local presence is established, qualified key personnel are hired, and the applicant maintains proactive communication with the local regulatory authorities throughout the entire process. Out of these 5 months, the first 2 weeks to 2 months are dedicated to the initial consultation and compliance assessment, the next 1 to 3 months are spent on the application and document preparation and submission, and the last portion of time is for the application process and finalization.

What documents are required for a CASP license application?

The standard list of required documents includes, but is not limited to, the following:

Resumes of directors and beneficiaries;
Detailed outline of the company’s governance structure;
Documents associated with the IT systems and security measures;
Confirmation of the company’s compliance with statutory requirements;
Documents outlining the relations with subsidiaries;
Notification of cross-border activities;
Business continuity plan;
Information on the provision of cross-border services.

Along with this documentation, the major internal policies must also be prepared for the application:

Client crypto-asset protection policy;
Risk assessment;
Conflict of interest prevention policy;
Internal control policy;
Anti-Money Laundering (AML) policy;
ICT security policy;
Client complaints handling policy;
Pricing policy;
Whistleblowing policy;
Outsourcing management policy;
Insurance policy;
Custodial services storage and administration policy.

What is the cost of obtaining a CASP license?

The total cost of the CASP license contains two main parts: the one-time payments during the application period and the post-licensing legal maintenance fees. The first category includes the following expenses:

Initial consultation;
Compliance assessment;
CASP application and compliance documentation.

The company setup and application phase may also include these additional costs:

Company incorporation;
Representation and follow-up work;
Administrative fees;
Potential security deposit;
Additional service fee.

The second category of expenses is related to the ongoing legal and compliance support for your licensed business. Besides the mandatory annual license renewal, these expenses may include the following optional services:

Regulatory inquiries management;
Banking compliance support;
B2B contract review;
Website legal updates;
HR and contractor documentation;
Local AML officer onboarding;
Bank account opening assistance;
EMI account setup for C2B or B2B transactions;
Office space and local office setup;
Liquidity provider account opening;
Onboarding with AML and KYC tech providers;
Preparation of website policies;
Assistance with Payment Service Provider (PSP) solutions.

These are the major costs associated with obtaining and maintaining the CASP license. For the specific price list, unique to your business model, make sure to contact us for the free first consultation.

Can non-EU companies apply for a CASP license?

Yes, but not directly. Non-EU-based companies must first establish their local presence in their selected EU licensing jurisdiction. This, namely, implies incorporating a legal entity, registering a local physical office address, appointing resident key personnel, and further proceeding with their CASP license application. Thus, for instance, in order to obtain the CASP license in Poland, you first need to register a legal entity in this jurisdiction and establish proper local presence. Importantly, foreign companies that do not have a valid CASP license cannot actively serve EU customers.

What are the capital requirements for CASPs under MiCA?

The share capital requirements for the CASP license in Europe vary for each class of services. Namely, the more crypto activities are covered by a particular category of licensing, the higher its capital requirements are:

Class 1: €50,000;
Class 2: €125,000;
Class 3: €150,000.

Does a CASP license allow operation across all EU member states?

Yes, it is one of the greatest benefits of the MiCA licensing. These passporting rights allow your company to serve clients across all EU member states under a single license. Thus, once you obtain the CASP license in Slovakia, Spain, or Poland, you are automatically allowed to provide crypto services to the vast community of EU clients across all member states.