CASP (Crypto-Asset Service Provider)

Definition

A CASP (Crypto-Asset Service Provider) is the central figure of the European MiCA regulation: the entity that needs authorization to provide professional services on crypto assets in the European Union. It is the regulatory equivalent of the former VASP, but with a much more demanding framework, harmonized across the 27 member states.

CASP authorization covers a range of services — among them the custody and administration of crypto assets on behalf of clients, the operation of trading platforms, the exchange of crypto assets for fiat money or other crypto assets, the execution of orders, placement and advice. To obtain it, MiCA imposes substantial requirements: minimum capital and solvency, governance and internal controls, conflict-of-interest management, secure custody of keys and — a key piece for clients — segregation of client assets from the provider's own balance sheet and CASP liability for their loss.

For institutional custody, CASP status is what gives auditable guarantees to funds, treasuries and individuals within the EU: an authorized provider is accountable to the client and to the supervisor on terms defined by the regulation, rather than operating in a legal vacuum. In Europe, it is the functional equivalent of the US qualified custodian. To see how it fits into the broader set of market providers and services, see our guide to institutional crypto custody.

In Context