Crypto Asset Service Provider

 

 

What MiCA Defines as a CASP

 

MiCA (Markets in Crypto-Assets Regulation) Article 3 defines a Crypto-Asset Service Provider as any legal person or other undertaking that provides one or more crypto-asset services to third parties on a professional basis. The regulation enumerates ten specific crypto-asset services that require CASP authorisation:

●        Custody and administration of crypto assets on behalf of clients.

●        Operation of a trading platform for crypto assets.

●        Exchange of crypto assets for fiat currency that is legal tender.

●        Exchange of crypto assets for other crypto assets.

●        Execution of orders for crypto assets on behalf of clients.

●        Placing of crypto assets.

●        Reception and transmission of orders for crypto assets on behalf of clients.

●        Providing advice on crypto assets.

●        Providing portfolio management on crypto assets.

●        Providing transfer services for crypto assets on behalf of clients.

A crypto payment gateway that exchanges received cryptocurrency for fiat currency on behalf of merchants falls squarely under service 3 (exchange of crypto assets for fiat currency) and service 10 (transfer services). Both require CASP authorisation under MiCA, making gateway licensing under MiCA non-optional for EU-operating businesses.

 

CASP vs. VASP — The Regulatory Framework Distinction

 

VASP (Virtual Asset Service Provider) is the term used by FATF in its Recommendations and adopted by many non-EU jurisdictions in their AML laws. CASP is the EU-specific term defined by MiCA. The concepts overlap but are not identical: FATF's VASP definition emphasises AML-focused obligations, while MiCA's CASP framework adds prudential requirements (capital adequacy), market conduct rules (transparency, conflict of interest), and consumer protection obligations that go beyond AML compliance.

 

 

Compliance Note: This glossary entry is provided for general educational purposes only and does not constitute financial, investment, legal, or tax advice. Industry terminology may vary across jurisdictions and providers; definitions herein may not directly reflect the specific features, terms, or specifications of Finassets' services. For details on Finassets' offerings, please refer to official product documentation or contact our team directly.