How to Register as a Crypto-Asset Service Provider (CASP)

What is a Crypto Asset Service Provider (CASP)?

If your company is involved in any of the following services, then it will be considered a CASP:

• the custody and administration of crypto-assets on behalf of third parties;
  This is means safekeeping or controlling, on behalf of third parties, crypto-assets or the means of access to such crypto-assets, where applicable in the form of private cryptographic keys;

• the operation of a trading platform for crypto-assets;
  managing one or more trading platforms for crypto-assets, within which multiple third-party buying and selling interests for crypto-assets can interact in a manner that results in a contract, either by exchanging one crypto-asset for another or a crypto-asset for fiat currency that is legal tender;

• the exchange of crypto-assets for fiat currency that is legal tender;
  means concluding purchase or sale contracts concerning crypto-assets with third parties against fiat currency that is legal tender by using proprietary capital;

• the exchange of crypto-assets for other crypto-assets
  means concluding purchase or sale contracts concerning crypto-assets with third parties against other crypto-assets by using proprietary capital;

• the execution of orders for crypto-assets on behalf of third parties
  means concluding agreements to buy or to sell one or more crypto-assets or to subscribe for one or more crypto-assets on behalf of third parties;

• placing of crypto-assets
  means the marketing of newly-issued crypto-assets or of crypto-assets that are already issued but that are not admitted to trading on a trading platform for crypto-assets, to specified purchasers and which does not involve an offer to the public or an offer to existing holders of the issuer’s crypto-assets;

• the reception and transmission of orders for crypto-assets on behalf of third parties
  means the reception from a person of an order to buy or to sell one or more crypto-assets or to subscribe for one or more crypto-assets and the transmission of that order to a third party for execution

• providing advice on crypto-assets;
  means offering, giving or agreeing to give personalised or specific recommendations to a third party, either at the third party’s request or on the initiative of the crypto-asset service provider providing the advice, concerning the acquisition or the sale of one or more crypto-assets, or the use of crypto-asset services.

If you feel that your company's activities are not covered by the above points, then it is best practice to clearly demonstrate in paper how your company is not a CASP. 

What is involved in getting authorised as a CASP?

MiCA is very similar to other EU regulations in that getting authorised takes time and effort. 

To achieve authorisation as a Crypto-Asset provider you need the following:

• Must have a registered office & company in the EU
• CASPs are valid for the entire EU and required a physical presence in their host country.
• CASPs should apply in the country where they have a company
• Legal status of the CASP (Ltd company etc…)
• Articles of Association/Constitution
• Type of services provided and what locations they are to be marketed.
• Description of the CASPs governance arrangements
• For any individual that controls more than 20% of the CASP – a fit and proper test must be completed.
• Provide a profile of the management team of the CASP and proof of skills and experience of the management team of the CASP.
• A detailed description of the CASP internal control mechanism including risk assessment and contingency planning
• Description of IT systems and security arrangements
• Proof they meet prudential safeguards i.e. they need insurance. 
• Policy for handling complaints from customers
• Description of the procedure for the segregation of clients' crypto assets and funds.
• Description of procedure and system to detect market abuse
• Description of operating rules for the trading platform
• When operating orders on behalf of 3^rd parties – description of execution policy.

Some of these are more challenging than others and in all cases, you need to clearly demonstrate that you have these in place at the time of application. 

How long does it take to get the CASP authorisation?

The application is made by the local regulator in the relevant country. In Ireland, it has yet to be confirmed, but it will most likely be the Central Bank of Ireland (CBI):

• Regulator has 25 working days to assess if the application is complete
• Regulator may discuss the application with other countries if there are any links to other member countries (subsidiaries etc…)
• The regulator will grant authorisation within 3 months of the application being complete.
• ESMA will be informed by the regulator and successful CASPs shall be posted to the register.
• Regulator will inform CASPs of their approval or rejection within 3 working days of the date of that decision.

We estimate that it will take at least 6 months to get authorised as a CASP. So, do not delay. You need to get started with this ASAP. 

Is there a publically available register of CASPs?

Yes, under MiCA there will be a public register of all CASPs. This will be managed by the ESMA. 

The register will contain the following:

• Legal name and company number of the CASP
• Trading name of the CASP
• Registered address of the CASP
• Website address of the CASP
• Name and contact details of the relevant regulator for the CASP
• List of services for which the CASP is authorised to provide
• List of member states for which the CASP is authorised to trade in
• Other services that the CASP provides but is not covered by MiCA

If there is a withdrawal of authorisation, this remains on the register for 5 years.

Can you service all EU countries from one CASP registration?

If a CASP wants to provide services in a number of EU member states, then they need to:

• Provide a list of all the member states they providing crypto-asset services in.
• The date they are starting to provide these services
• List of all the services provided by the CASP that are not covered by this regulation

The regulator then informs the ESMA and all the other relevant regulators that the CASP is providing crypto-asset services in their country.

They regulator will confirm this in writing to the CASP.

CASPs can only start providing services in other member states from the date of the receipt of this communication referred above. This should happen within at least 15 days of the CASPs first application.

If you would like to speak with a member of our team you can contact us using the form below.