What is a Crypto-Asset Service Provider (CASP) under MiCA?

MiCA defines a CASP, under Article 3(1)(15), as a “legal person or other undertaking whose occupation or business is the provision of one or more crypto-asset services to clients on a professional basis, and that is allowed to provide crypto-asset services in accordance with Article 59”.

This definition can be broken down into 6 distinct elements as follows:

1. A legal person or other undertaking;

2. Acting by way of an occupation or business;

3. The provision of one or more crypto-asset services;

4. Targeting clients;

5. On a professional basis;

6. Authorisation to provide crypto-asset services

With reference to point (3) of the definition of CASP, MiCA defines a ‘crypto-asset service’ as “a service or activity which is provided in relation to any crypto-asset”. The following is an exhaustive list of ‘crypto-asset services’:

• Providing custody and administration of crypto-assets on behalf of clients;

• Operation of a trading platform for crypto-assets;

• Exchange of crypto-assets for funds;

• Exchange of crypto-assets for other crypto-assets;

• Execution of orders for crypto-assets on behalf of clients;

• Placing of crypto-assets;

• Reception and transmission of orders for crypto-assets on behalf of clients;

• Providing advice on crypto-assets;

• Providing transfer services for crypto-assets on behalf of clients.

It must be emphasised that a person providing crypto-asset services without being allowed to provide such services in accordance with Article 59 does not fall within the definition of a CASP. Instead, such person will be put on a register of entities that provide crypto-asset services in violation of Article 59 or 61, as provided for in Article 110 of MiCA.