What is a CASP? (Crypto-Asset Service Provider)
A CASP (Crypto-Asset Service Provider) is a company authorized to offer professional services related to cryptocurrencies and other digital assets in the European Union. The term was introduced by the European regulation MiCA (Markets in Crypto-Assets Regulation), which establishes a common set of rules for all crypto companies operating in the European market.
If a platform allows you to buy, sell, store, or exchange cryptocurrencies and serves clients from the EU, it must comply with MiCA requirements to operate legally. Without CASP authorization, the company cannot legally offer these services within the European Union.
What services does a CASP offer?
A CASP is not a single type of company — it is a category that covers any business offering professional services related to digital assets. Depending on its specific activities, a CASP can be an exchange, a custody platform, a broker, or a combination of these.
According to the MiCA regulation, activities defining a CASP include:
- Custody and administration: Storing clients’ digital assets — when you leave your Bitcoin on Binance or Coinbase, you are using a custody service.
- Trading platforms: Operating exchanges where users can buy, sell, or exchange crypto — classic exchanges.
- Crypto-fiat exchange: Converting cryptocurrencies into traditional currencies like euros or lei — when you withdraw money into your bank account.
- Exchange between crypto-assets: Direct conversion between two cryptocurrencies — Bitcoin to Ethereum, for example.
- Order execution: Taking and completing trading requests for clients.
- Transfer of crypto-assets: Services for sending digital assets between accounts or platforms.
- Advisory and portfolio management: Offering investment recommendations or directly managing clients’ assets.
In practice, most large platforms combine several of these services — an exchange like Binance simultaneously offers custody, trading, and crypto-fiat exchange.
User obligations and safety
Authorization as a CASP is not a formality — it is a process through which a company demonstrates to authorities that it is stable, secure, and protects your assets. This is the concrete difference between a MiCA-authorized platform and one operating without a license.
To receive authorization, a CASP must implement:
- Client verification: KYC (Know Your Customer) procedures — that is why any authorized platform asks for your ID and selfie upon registration.
- Anti-money laundering prevention: AML (Anti-Money Laundering) policies that monitor suspicious transactions.
- Protection of your assets: The obligation to keep clients’ funds separate from the company’s money — if the platform goes bankrupt, your assets do not go with it.
- Cybersecurity: Protection systems against attacks and security breaches.
- Governance and internal control: Strict standards of organization and supervision, monitored by national authorities like CSSF in Luxembourg or ASF in Romania.
For you as a user, this means: an authorized CASP platform cannot use your money for its own operations, must provide clear information about costs and risks, and must have procedures through which you can file a complaint if something goes wrong.
A platform without MiCA authorization has none of these obligations towards you.
Difference between CASP and VASP
If you have encountered the term VASP (Virtual Asset Service Provider), it is normal to wonder what the difference is. In short: they describe the same type of activity but come from different legislative contexts.
- VASP is the term used globally, especially by the FATF (Financial Action Task Force) — the international body combating money laundering and terrorist financing. You will frequently encounter it in regulations regarding the prevention of financial crime.
- CASP is the European term, introduced by the MiCA regulation. If a company operates in the EU, European authorities care about CASP authorization, not VASP classification.
For you as a user from Romania or any other EU member state, the relevant term is CASP. If a platform boasts that it is a “registered VASP” but does not have MiCA authorization, that does not give it the right to operate legally in the European Union.
As MiCA is fully implemented, the term CASP becomes the standard in official documents and the European crypto industry — VASP remains relevant only in the context of international anti-money laundering regulations.
CASP and stablecoins
Stablecoins like USDT or USDC are treated differently from other cryptocurrencies under the MiCA regulation. The reason is simple: they are designed to maintain a stable value and can be widely used for payments — making them more sensitive financially.
A CASP facilitating the trading or use of stablecoins must comply with additional requirements beyond the standard ones. Stablecoin issuers have even stricter obligations — they must continuously prove that they hold the real reserves supporting each issued token.
For you as a user, this means that a stablecoin issued and traded through MiCA-authorized platforms has real guarantees behind it — reducing the risk of a collapse like that of TerraUST in 2022. More details on how MiCA regulates stablecoins can be found in our guide on the MiCA regulation.
Examples of CASPs
Among the well-known platforms operating in this ecosystem are:
- Binance — the largest exchange in the world by trading volume;
- Coinbase — a publicly listed exchange, especially popular in the US and Europe;
- Kraken — an exchange with a long history and a focus on security;
- Bitstamp — one of the oldest European exchanges;
- Abarai — a crypto platform operating in the Romanian market.
Important to note: the status of an authorized CASP depends on the licenses each company holds in the jurisdictions where it operates. A company can be authorized in one EU member state and operate in all other states based on the same European passport — one of the concrete advantages of the MiCA regulation. Active authorizations can be verified through national supervisory authority registers.
Frequently Asked Questions
- Is an exchange the same as a CASP?
- No. An exchange is just one type of CASP. The term CASP is broader and also includes custody platforms, brokers, portfolio managers, or transfer service providers — not just exchanges.
- How do I know if the platform I use is authorized CASP?
- You can check directly on the platform’s website in the legal or regulatory information section. Alternatively, national supervisory authorities in each EU member state publish registers with authorized CASPs.
- Is CASP authorization mandatory?
- Yes. Any company offering crypto-asset services to EU clients must comply with MiCA requirements and obtain the necessary authorization. Operating without authorization means illegal activity in the European market.
- What happens if I use a platform without MiCA authorization?
- An unauthorized platform has no legal obligations towards you — it is not required to protect your funds, be transparent with costs, or handle complaints. In case of problems, you have no legal protection mechanism in the EU.
- Does MiCA apply to all crypto companies?
- It applies to all companies offering crypto-asset services to clients in the European Union, regardless of where they are registered. A company registered outside the EU serving European clients is still subject to MiCA.
Conclusion
CASP is the term by which the MiCA regulation defines any company offering professional services related to digital assets in the European Union. It is not a simple label — it is an authorization that comes with concrete obligations towards users: fund protection, cost transparency, and clear complaint procedures.
For you as a user, the most important thing you can do is verify if the platform you use is MiCA authorized. The difference between an authorized platform and one operating without a license is not bureaucratic — it is the difference between having or not having real protection in case something goes wrong.