CASP License Crypto License: Your Guide to EU Regulation in 2026

The Markets in Crypto-Assets Regulation (MiCA) is fully in force across the European Union as of 2026. Any crypto asset service provider operating in or targeting EU residents must hold a CASP license (Crypto Asset Service Provider license). This unified regime replaces the patchwork of national VASP registrations and introduces harmonised standards for capital, governance, and consumer protection.

For founders, the CASP license crypto license is the gateway to a 27-country passport. Whether you run an exchange, wallet, or custody service, compliance with MiCA is mandatory. Consulting24 advises and coordinates applications across jurisdictions, ensuring you meet the regulatory requirements efficiently. Our team has helped over 500 firms obtain licenses globally, and we bring that expertise to your CASP journey.

This guide covers everything from capital requirements to banking, common mistakes, and alternatives like Panama for those considering non-EU options. For a broader view, explore our jurisdictions page.

What Is a CASP License Crypto License?

A CASP license is the regulatory authorisation required under the EU's MiCA framework to offer crypto asset services. It covers activities such as operating a trading platform, providing custody, executing orders, and more. Unlike the previous national regimes, MiCA creates a single rulebook, meaning a license obtained in one EU member state is valid across all others via passporting.

The European Securities and Markets Authority (ESMA) coordinates supervision, but national competent authorities (NCAs) issue licenses. Key requirements include minimum capital, a registered office in the EU, fit-and-proper management, and strong AML/CFT controls. The license is technology-neutral, applying to both centralised and decentralised services where there is a central entity.

Consulting24 helps you choose the best EU jurisdiction for your CASP application and manages the entire process. We have direct experience with Lithuania and Estonia and coordinate with local partners in other member states.

Who Needs a CASP License?

Any legal person providing crypto asset services to EU residents on a professional basis must hold a CASP license. This includes:

• Exchanges (order-book or DEX operators with a central entity)
• Custodial wallet providers
• Brokers and dealers in crypto assets
• Platforms offering staking, lending, or borrowing
• Advisory services on crypto assets
• Portfolio managers dealing with crypto assets

If you are a non-EU firm targeting EU clients, you must establish an EU entity and obtain a CASP license. DeFi projects that are sufficiently decentralised may fall outside scope, but most commercial services are captured. Even NFT marketplaces may be in scope if the NFTs qualify as crypto assets under MiCA.

For example, a US-based exchange wanting to serve German and French users needs an EU subsidiary with a CASP license. Consulting24 can advise on the best jurisdiction for your setup.

License Type & Regulator

The CASP license is a single authorisation under MiCA. The regulator is the national competent authority (NCA) of the EU member state where you establish your registered office. For example, in Lithuania it is the Bank of Lithuania; in Malta, the Malta Financial Services Authority (MFSA); in France, the Autorité des Marchés Financiers (AMF). ESMA provides oversight and coordination to ensure consistent application across the EU.

There are no sub-types, but the license scope depends on the services you intend to offer. Each service class carries its own capital requirement (see below). The application process is similar across jurisdictions, but timelines and fees vary. Consulting24 helps you select the NCA that best matches your business model and timeline.

Cost & Timeline

Exact pricing is confirmed in a consultation. For comparison, Panama offers a flat EUR 6,000 license fee with no minimum capital, but it does not provide EU passporting. Consulting24 provides a fixed-cost quote after scoping your services.

Capital Requirement

MiCA sets minimum capital based on the type of services provided:

• EUR 50,000 for certain services (e.g., reception and transmission of orders, advice)
• EUR 125,000 for custody and administration of crypto assets
• EUR 150,000 for operating a trading platform or exchange

If you offer multiple services, the highest applicable tier applies. Capital must be held as liquid assets (cash or equivalents) and cannot be used for operational expenses. It serves as a buffer for client protection. Some NCAs may require additional capital based on the volume of transactions or risk profile. Consulting24 can help structure your capital compliance and advise on the most efficient way to meet the requirement.

Tax Treatment

Tax treatment of crypto assets under MiCA is not harmonised. Each member state applies its own corporate income tax, VAT, and capital gains rules. Typical corporate tax rates range from 12% (Lithuania) to 25% (Germany). Some countries offer exemptions for long-term holdings or specific activities. For example, Malta has a flat 5% effective tax rate on distributed profits for certain structures. VAT treatment also varies: crypto-to-fiat exchanges are generally VAT-exempt, but advisory services may be taxable.

Consulting24 advises on tax-efficient structuring, but you should engage a local tax advisor for definitive guidance. We can introduce you to vetted tax professionals in your chosen jurisdiction.

Allowed Activities Under a CASP License

A CASP license permits one or more of the following services as defined in MiCA:

• Operating a trading platform for crypto assets
• Exchanging crypto assets for fiat currency
• Exchanging crypto assets for other crypto assets
• Custody and administration of crypto assets on behalf of clients
• Placing of crypto assets
• Reception and transmission of orders for crypto assets
• Execution of orders for crypto assets on behalf of clients
• Providing advice on crypto assets
• Portfolio management of crypto assets

Staking and lending may also be covered if they fall under custody or execution. The license scope is defined in your application. You can apply for multiple services, but each may increase capital requirements and regulatory scrutiny. Consulting24 helps you define the optimal scope for your business model.

Step-by-Step Application Process

1. Pre-application assessment - Consulting24 reviews your business model, services, and target market. We identify potential issues early.
2. Choose jurisdiction - We help select the best EU member state based on your needs, timeline, and budget. Factors include regulatory speed, cost, and banking access.
3. Company setup - Incorporate a legal entity with a registered office in the chosen country. This typically takes 1-2 weeks.
4. Document preparation - Draft policies (AML, risk management, business plan), governance documents, and capital proof. This is the most time-consuming step, often 2-3 months.
5. Submit application - File with the NCA; pay the application fee. The regulator has up to 3 months to review.
6. Review & interviews - Regulator assesses fit-and-proper, operational readiness, and compliance. Management may be interviewed.
7. Authorisation - License granted; you may begin operations. You receive a formal license document.
8. Ongoing compliance - Periodic reporting, audits, and capital maintenance. Consulting24 provides ongoing support.

Consulting24 coordinates each step, liaising with local lawyers and regulators. Our end-to-end service reduces the risk of delays.

Banking & Payments

CASP license holders need a bank account to hold client fiat funds and operational capital. Many traditional banks are hesitant to serve crypto firms due to perceived AML risks. Consulting24 can introduce you to crypto-friendly banks in Lithuania, Malta, and other EU jurisdictions. These banks understand the regulatory framework and are more willing to open accounts for licensed CASPs.

Payment processing for crypto-to-fiat conversions is also available through licensed partners. Some jurisdictions, like Lithuania, have a growing ecosystem of fintech-friendly banks. We recommend opening accounts early in the process, as bank onboarding can take 1-2 months. For alternative approaches, see our comparison with Lithuania.

Benefits of a CASP License

• EU-wide passport - Serve all 27 member states from one license, no need for multiple registrations.
• Regulatory clarity - Clear rules on capital, custody, and disclosure reduce legal uncertainty.
• Investor confidence - MiCA compliance signals trustworthiness and attracts institutional clients.
• Access to banking - Easier to open accounts with regulated status; many banks prefer licensed firms.
• Scale - Single compliance framework reduces costs for cross-border operations compared to multiple national licenses.
• Future-proofing - MiCA is the global benchmark; early compliance positions you for other regimes.

Compliance & Trust

Maintaining a CASP license requires ongoing compliance: AML/CFT policies, transaction monitoring, regular audits, and reporting to the NCA. You must appoint a compliance officer and a money laundering reporting officer (MLRO). Annual audits by an external auditor are mandatory. Consulting24 provides compliance support, including policy updates and regulatory filings. We also offer training for your team.

Note: This is general guidance, not legal advice. Always consult a qualified lawyer for your specific situation. Compliance failures can lead to fines, suspension, or revocation of the license. We help you build a strong compliance framework from day one.

Common Mistakes When Applying

• Incomplete documentation - Missing policies or unclear business plans delay approval. For example, failing to detail your AML risk assessment is a common pitfall.
• Underestimating capital - Not having sufficient liquid capital at application. Some firms apply with the minimum but later need more for operational expenses.
• Choosing the wrong jurisdiction - Some NCAs are faster or more crypto-friendly. For instance, Lithuania is known for efficiency, while others may have backlogs.
• Ignoring passporting rules - Not understanding that the license covers all EU, not just the issuing country. You must still comply with local marketing rules.
• Poor fit-and-proper checks - Management with adverse backgrounds may be rejected. Disclose all relevant information upfront.
• Delaying bank account setup - Banks take time; start the process early to avoid delays in capital deposit.

Consulting24 helps you avoid these pitfalls with a structured checklist and project management.

Alternatives and Comparisons

While the CASP license is the only EU-wide option, some firms consider non-EU jurisdictions. Panama offers a flat-fee license at EUR 6,000 with no minimum capital, but it does not provide EU passporting. It is suitable for firms targeting Latin America or global markets without EU focus. Other alternatives include licensing in Switzerland (FINMA) or the UK (FCA), each with different capital and scope. Switzerland requires a minimum of CHF 100,000 for certain activities, while the UK's FCA regime has no fixed minimum but expects substantial resources.

For a full comparison, see our Lithuania comparison and jurisdictions page. Consulting24 advises on the best fit for your business and coordinates applications in the jurisdictions we serve directly (Estonia, Lithuania, Panama) and advises on others.

Related jurisdictions

Mardo Soo · CEO, Consulting24Personally advises on jurisdiction selection. 500+ crypto licenses across Estonia, Lithuania & Panama. LinkedIn →

General guidance, not legal advice. Rules and fees evolve — we confirm current requirements for your case.