CASP or Crypto-Asset Service Provider means any person whose occupation or business is the provision of one or more crypto-asset services to third parties on a professional basis. Crypto-asset service means any of the services and activities listed below relating to any crypto-asset:
(a) the custody and administration of crypto-assets on behalf of third parties;
(b) the operation of a trading platform for crypto-assets;
(c) the exchange of crypto-assets for fiat currency that is legal tender;
(d) the exchange of crypto-assets for other crypto-assets;
(e) the execution of orders for crypto-assets on behalf of third parties;
(f) placing of crypto-assets;
(g) the reception and transmission of orders for crypto-assets on behalf of third parties
(h) providing advice on crypto-assets;
From VASP to CASP
The term CASP was first introduced in 2020 as part of the publication of the draft regulation 2019/1937 Markets in Crypto-assets (MiCa), the goal of which is to create a unified legal framework for regulating the cryptocurrency and virtual asset industry within the European Union. Before this, the term VASP or Virtual Asset Service Provider was mainly used to designate crypto companies. It was introduced as part of the Financial Action Task Force (FATF) recommendations and guidelines a few years earlier.
CASP and MiCa regulation
According to the MiCa regulation, increased requirements are applied to crypto-asset service providers CASP, including with regard to share capital, corporate structure, AML/CFT procedures, IT infrastructure, and so on. In addition to the above, before starting their operations, all crypto companies are required to go through a licensing process and obtain a CASP license from regulatory authorities in the country where the company is registered.