Complete Guide to MiCA CASP Authorization in 2026

The European crypto landscape is evolving rapidly under the EU MiCA (Markets in Crypto-Assets) regulation, and 2026 marks a pivotal year for businesses seeking to operate legally across the European Economic Area (EEA). Obtaining CASP (Crypto-Asset Service Provider) authorization ensures regulatory compliance, investor trust, and seamless access to European markets.

What is MiCA and CASP Authorization?

MiCA is the EU framework regulating crypto-assets and service providers, aiming to enhance transparency, investor protection, and market stability.

A CASP authorization is a license for companies offering crypto-related services, such as exchanges, custody, token issuance, or advisory services. It ensures compliance with:

• EU MiCA regulations
• AML/CFT (anti-money laundering / counter-terrorist financing) directives
• FATF recommendations
• Local corporate governance requirements

With CASP authorization, companies can operate legally, passport services across the EEA, and gain credibility with investors and financial institutions.

Types of CASP Activities Covered

A MiCA-compliant CASP license typically includes:

• Crypto-asset exchange services
• Custody and wallet solutions
• Execution of client orders
• Transfer and placement of crypto-assets
• Advisory services related to crypto investments

License types define capital requirements, compliance obligations, and reporting standards.

Key Requirements for CASP Authorization in 2026

1. Share Capital Requirements

• Advisory services: €50,000
• Custody or exchange services: €125,000
• Trading platforms: €150,000+

Additional reserves may apply depending on operational volume and risk exposure.

2. Management & Governance

• Qualified directors and compliance officers
• Clear operational hierarchy and internal audit procedures
• Functional presence in an EU member state
• Strong risk management framework

3. AML / Compliance Measures

• Client due diligence (KYC)
• Transaction monitoring and reporting
• Internal compliance policies aligned with EU standards

4. IT & Cybersecurity Standards

• Secure wallet and custody infrastructure
• GDPR-compliant data protection
• Cybersecurity protocols and incident reporting

Company Formation for CASP Licensing

Before applying for a license, a legal entity must be established (e.g., Société à responsabilité limitée – S.à r.l. in Luxembourg). Key points:

• 100% foreign ownership allowed
• Minimum share capital depends on license type (€12,000–€50,000)
• Fast incorporation: 5–10 business days
• MiCA-compliant corporate governance
• Transparent ownership and reporting

Licensing Timeline

1. Company formation
2. Licensing documentation preparation
3. Capital allocation
4. Submission to the relevant regulatory authority
5. Regulatory review and feedback

Estimated timeline: 3–6 months, depending on preparation quality.

Estimated Costs

Approximate first-year budget:

• Government and registration fees: €5,000–€12,000
• Legal and compliance structuring: €15,000–€40,000
• Initial capital: €50,000–€150,000+
• Operational expenses (office, audit, reporting): €25,000–€50,000

Total: €95,000–€250,000+, depending on license type and operational scale.

Banking & Payment Integration

CASP authorization enhances credibility with:

• EU banks and crypto-friendly payment service providers (PSPs)
• European payment settlement partners

Successful banking relationships require:

• Transparent ownership and UBO disclosure
• Verified source of funds
• Strong compliance and risk management
• Operational presence in the EU

Ongoing Compliance Obligations

Licensed CASPs must:

• Maintain AML/KYC and transaction monitoring
• Appoint compliance and AML officers
• Submit regulatory reports to authorities
• Pay annual supervisory fees
• Conduct audits as required

Non-compliance may result in fines, license suspension, or revocation.

Advantages of CASP Authorization under MiCA

• EU-wide passporting rights
• Transparent regulatory framework
• Access to a robust banking and fintech ecosystem
• Investor and partner confidence
• Scalable and compliant corporate structures

MiCA CASP authorization is ideal for exchanges, custodians, token issuers, and fintech projects aiming for secure EU expansion.

FAQ — MiCA CASP Authorization 2026

How long does it take to get a license?

3–6 months depending on preparation and review.

What is the minimum capital?

From €50,000 for advisory services to €150,000+ for trading platforms.

Is local presence required?

Yes, functional management and decision-making in an EU member state are expected.

Can the license operate across the EU?

Yes, CASP authorization allows passporting throughout the EEA.

What ongoing reporting is required?

AML/KYC compliance, internal audits, transaction monitoring, cybersecurity, and regulatory filings.