If you run or plan a crypto exchange, wallet, or custody business and want to serve European customers, the CASP license is the authorization you need. This guide explains what a CASP license is, who needs one, the capital requirements, the application process, and how to choose a jurisdiction, including what the end of the transition period on July 1, 2026 means for you.
Key takeaways
- A CASP (Crypto-Asset Service Provider) license is the MiCA authorization required to offer crypto services, like custody, trading, and exchange, across all 27 EU countries under one license.
- Minimum capital is EUR 125,000 for custody or exchange and EUR 150,000 for running a trading platform, with EUR 50,000 for lighter crypto services.
- The formal review clock is 25 plus 40 working days, though most applicants report roughly 3 to 6 months from start to decision (industry estimate).
- Existing virtual asset service providers (VASPs) had to be authorised by July 1, 2026, or earlier where their country shortened the transition.
- Do not choose a jurisdiction on cost alone: regulators expect local presence, real decision-making, and strong AML compliance.
Not legal advice. Requirements and timelines vary by country. Confirm with a qualified EU lawyer or your national regulator.
What is a CASP license?
A CASP license is the authorization that lets a crypto-asset service provider (CASP) operate and offer regulated crypto services to clients in the European Union under the Markets in Crypto-Assets Regulation (MiCA). One national competent authority grants it, and it works across all 27 EU countries, so it is also called a MiCA license (EUR-Lex).
The term CASP comes from the MiCA regulation, short for Markets in Crypto-Assets, and a crypto company needs a CASP license before it can provide a crypto asset service to EU clients. This guide answers the crypto question only; it is not about the unrelated IT security certificate that shares part of the name.
Crypto licensing in Europe now follows one MiCA framework. For crypto businesses in the EU crypto market, obtaining a CASP license is the path forward, and compliance, transparency, and investor protection are checked at every step. Companies that hold client funds in particular need financial security, a clear business model, and AML compliance. For cost and process, see our MiCA license guide, and for the wider rulebook our MiCA regulation pillar.
What a CASP license covers
A CASP license covers the crypto-asset services listed in the MiCA regulation, from custody and trading to advice and portfolio management. A single license can include one or several services if the business plan describes each.
The crypto services include:
- custody and administration of crypto-assets and other digital assets for clients, plus related activities;
- operation of a trading platform for crypto-assets;
- exchange of crypto-assets for funds or other crypto-assets (exchange services);
- execution of orders, placing, and reception and transmission of orders;
- advice and portfolio management;
- transfer services.
The more services you add, the higher the capital requirements and the more the regulator will scrutinize your operational setup, compliance controls, compliance staff, and transparency.
Who needs a CASP license?
A crypto-asset service provider (CASP) needs a CASP license if it provides crypto services to clients in the EU and is not already a regulated financial institution that can notify its regulator instead. That includes crypto businesses such as exchanges, custodians, brokers, and wallet providers that hold client assets, whether new or already able to operate under a national regime.
- Existing VASPs. Companies registered as virtual asset service providers under national rules had to convert to a CASP license, as covered below.
- New crypto service providers. A start-up crypto company obtaining a CASP crypto license must secure it before it can operate, since MiCA requirements apply from day one.
- Non-EU companies. Must set up an EU entity or work with an authorised partner to operate in Europe.
Token issuers and stablecoin issuers follow separate rules; most token issuers need only a white paper. See our guide to MiCA stablecoin rules.
CASP license requirements
CASP license requirements under MiCA regulations combine capital, governance, AML compliance, and a real EU presence. The list below summarizes the main points, and each one is checked by the regulator during review.
- Minimum capital: EUR 50,000 to EUR 150,000, depending on the services (EUR 125,000 for custody or exchange, EUR 150,000 for a trading platform).
- Application timeline: formally 25 plus 40 working days, about 3 to 6 months in practice (industry estimate).
- Scope: all 27 EU member states under a single license.
- VASP transition deadline: July 1, 2026 (earlier in some countries).
- AML compliance and KYC: mandatory.
Capital requirements
The CASP license capital requirements are set in three classes under MiCA's framework: EUR 50,000 for order execution, advice, portfolio management, and transfers; EUR 125,000 for custody and exchange; and EUR 150,000 for operating a trading platform. Companies must hold the higher of that amount or one quarter of the previous year's fixed overheads (MiCA Article 67 and Annex IV, via ESMA and Springlex). Sufficient capital is only the start of obtaining a license.
Governance and local presence
A CASP must have a registered office in an EU country, its place of effective management in the EU, and at least one director resident in the Union (Article 59, via ESMA). The local regulator expects local directors who take real decisions. Your business plan, risk framework, and operational setup must show how the business will run.
AML and client assets
AML compliance is mandatory: the business needs anti money laundering controls and AML compliance training, KYC, and transaction monitoring. Client assets must be segregated from corporate assets. CASP compliance continues after approval, through ongoing reporting, audits, and risk management.
The application process and timeline
The licensing process, your entry into the crypto space in Europe, starts with choosing a regulator, preparing the business plan and policies, then filing the application. The competent authority of the Member State has 25 working days to check completeness and 40 working days from a complete file to decide, and information requests can pause the clock for up to 20 working days (Article 63, via ESMA).
In practice, applicants obtaining a license report roughly 3 to 6 months, and regulatory approval timelines depend on jurisdiction and on the quality of the application. Poor compliance documentation is the usual cause of delay for a crypto company, so regulatory approval rewards preparation and obtaining it takes planning.
Choosing a crypto licensing jurisdiction
The right jurisdiction matches your business model, your team, and the regulator's expectations, not just the cheapest fee. A jurisdiction is a strategic choice for a crypto business. All EU countries apply the same MiCA regulations, but regulators differ in speed, supervisory style, and local requirements, so key jurisdictions are worth comparing side by side, with MiCA compliance as the constant.
- Malta. Offers a structured framework for crypto operations through the MFSA. ESMA's July 2025 peer review of one Maltese authorization found some material issues were not fully resolved, so expect close scrutiny (ESMA).
- Lithuania. The Bank of Lithuania runs the formal review within the MiCA clock of 25 plus 40 working days, up to about 65 working days when no information request pauses it (Bank of Lithuania).
- Other countries. Germany, France, Ireland, Luxembourg, and Cyprus are also popular, as are some Eastern Europe regulators.
Crypto companies obtaining a CASP license should compare how each jurisdiction supervises crypto businesses: companies that operate across borders need a framework that fits their business, consistent MiCA rules, and a regulator that explains how it applies MiCA regulations to crypto licensing, MiCA compliance, and anti money laundering checks. Whichever you pick, a jurisdiction based choice should consider banking access, talent, and supervisory culture. Choosing a business location based solely on cost can lead to compliance issues under crypto regulation, because a regulator that sees a shell structure will ask hard questions.
VASP-to-CASP transition
Existing virtual asset service provider (VASP) companies had to apply for a CASP license and be authorised by July 1, 2026, or earlier where their home authority shortened the transition. The transition ended on that date everywhere in the EU. For the national registration side, see our guide to the VASP license. ESMA expected unauthorised providers to run a compliant, orderly exit, moving clients to an authorised CASP or a self-hosted wallet (ESMA statement, April 17, 2026).
Germany and Austria allowed 12 months, the Netherlands 6, and France, Malta, and Spain 18 (ESMA list). ESMA's interim register now lists several hundred authorised CASPs, so check the ESMA register for the current list. A company that missed the deadline must now apply as a new CASP.
Benefits of holding a CASP license
A CASP license gives your business a single license for all 27 countries of the European Union, stronger consumer protection, and a visible sign of a stable legal foundation.
- EU-wide access. One license replaces separate national registrations, so companies and crypto businesses can operate across Europe.
- Market integrity and compliance. Rules against market abuse and strict risk management support investor protection and your reputation.
- Banking and partner trust. Banks and payment providers prefer regulated counterparties, and the European Union's crypto regulation gives them a clear test. See our guide to crypto-friendly banks.
How SimplifyLabs helps
If you want to serve EEA customers before, or instead of, building your own regulated entity, SimplifyLabs offers two routes. The Grey-Label MiCA Crypto Exchange lets you launch a branded trading product, and the MiCA Crypto and Investment API embeds crypto and investing into your app. In both, MiCA-authorised services come from a licensed partner, Kvarn X, while SimplifyLabs provides the technology and does not hold a CASP license itself.
Frequently asked questions
What is a CASP license?
A CASP license is the MiCA authorization that allows a crypto-asset service provider to offer services such as custody, trading, and exchange to clients across all 27 EU countries. One national competent authority grants it, and it works across Europe through passporting. It is the main license for crypto exchanges, crypto custodians, and brokers, and CASP crypto firms need it before launch.
What is the difference between a CASP license and a MiCA license?
They usually mean the same thing. CASP license names the authorization category, an authorization as a crypto-asset service provider, and MiCA license is the common shorthand. Stablecoin issuers need a different authorization. For cost and process details see our MiCA license guide.
How long does it take to get a CASP license?
Formally, the authority has 25 working days to check completeness and 40 working days to decide, but applicants often report about 3 to 6 months in total. Information requests pause the clock, and weak documentation slows approval. Treat the estimate as typical, not guaranteed.
Which EU country is best for a CASP license?
There is no single best country. Malta offers a structured framework, Lithuania is known for a roughly 65 working day formal review, and others suit different business models. Choose on supervisory fit, banking access, and local presence, not cost alone, because regulators expect real decision-making in the country.
How much does a CASP license cost?
Capital is EUR 50,000, EUR 125,000, or EUR 150,000 depending on services, or one quarter of fixed overheads if higher. Legal fees, compliance staff, systems, and audits add to the total.
What is a CASP certification?
In the crypto context, people searching for a CASP certification usually mean the CASP license under MiCA. It is not an IT security exam. The license is granted by a home authority after review of your application file, governance, capital, and AML controls.
