Crypto-Asset Service Provider (CASP)

🔹 Definition

A Crypto-Asset Service Provider (CASP) is a legal or natural person that provides one or more professional services related to crypto-assets—such as custody, exchange, trading, issuance, or transfer—on behalf of clients or for commercial purposes. The term is widely used in European and international regulatory frameworks, particularly under the European Union’s Markets in Crypto-Assets Regulation (MiCA).

CASPs are subject to licensing, registration, and supervision requirements, and they must implement strong Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) controls. The definition is similar in scope to Virtual Asset Service Provider (VASP) under FATF guidance but tailored to the EU regulatory environment.

🔹 Frequently Asked Questions (FAQs)

Q1: What services fall under the CASP definition?
Under MiCA and similar regulations, a CASP may provide:

• Custody and administration of crypto-assets on behalf of third parties
• Operation of trading platforms for crypto-assets
• Exchange services between crypto-assets and fiat currencies or other crypto-assets
• Execution of crypto-asset orders
• Placement or marketing of crypto-assets
• Advice on crypto-assets

Q2: How is CASP different from VASP?

• CASP is used in the European Union under the MiCA regulation
• VASP is the term used in the Financial Action Task Force (FATF) global standards
  Both cover similar activities, but the regulatory requirements and legal definitions may vary slightly by jurisdiction.

Q3: What are the regulatory obligations for CASPs?
CASPs must:

• Register or obtain authorization from a competent authority (e.g., financial regulator)
• Conduct customer due diligence (CDD) and implement AML/CFT programs
• Maintain cybersecurity and operational resilience controls
• Disclose clear information to users about fees, risks, and rights
• Report suspicious transactions and cooperate with law enforcement when required

Q4: Why is CASP regulation important?

• Enhances investor protection and market integrity in the crypto sector
• Helps prevent misuse of crypto-assets for money laundering or terrorist financing
• Promotes a level playing field for service providers in the digital finance ecosystem
• Enables cross-border supervision and regulatory harmonization across the EU