By 2026, operating a crypto business in the European Union will no longer fall into a regulatory grey area — instead, it will constitute a direct breach of EU law. With the full implementation of MiCA (EU Regulation 2023/1114), the regulatory landscape fundamentally shifts: national crypto registrations are phased out and replaced by a single, harmonised supervisory framework. As a result, crypto-asset service providers must operate under the CASP license, which serves as the unified authorization model across the European Union.
At the centre of this framework is CASP authorisation (Crypto-Asset Service Provider). This licence is not optional, symbolic, or “best practice” — it is the legal foundation for offering crypto services in the EU market.
This guide explains how CASP licensing works in practice in 2026, which business models fall within scope, what regulators actually assess, and how companies should approach preparation realistically.
CASP Authorisation Explained in Plain Terms
A CASP licence is a regulatory approval issued under MiCA that allows a company to legally provide crypto-asset services within the European Union.
In practical terms, CASP confirms that a business:
- and therefore meets EU-level regulatory and governance standards;
- and therefore holds sufficient own funds to absorb operational risk;
- applies AML and counter-terrorist financing controls comparable to financial institutions;
- protects client assets and private keys;
- operates secure, auditable, and resilient IT systems;
- and therefore is managed by individuals deemed competent and trustworthy by the regulator.
Once MiCA is fully enforced, any crypto service offered without CASP authorisation will be considered unlawful, regardless of where the company is incorporated.
Activities That Trigger CASP Licensing
MiCA does not focus on labels such as “exchange” or “wallet provider”. Instead, it assesses what a company actually does.
CASP authorisation is required if a business performs one or more of the following functions:
- including the holding or safeguarding of crypto-assets for clients;
- including the conversion of crypto-assets into fiat currencies;
- and, in particular, the exchange of crypto-assets for other crypto-assets;
- operating a crypto trading venue or order book;
- executing trades on behalf of clients;
- including the transmission or reception of client orders;
- placing crypto-assets on the market;
- providing crypto investment advice;
- including the management of crypto portfolios;
- transferring crypto-assets for clients.
If any of these activities are part of your operational flow — even indirectly — CASP licensing applies.
Activities Outside the Scope of MiCA
Not every blockchain-related project falls under CASP regulation. MiCA explicitly excludes:
- including one-off, non-fungible NFTs that are not economically interchangeable;
- purely internal group transactions;
- instruments already regulated under MiFID II;
- electronic money and traditional payment instruments;
- insurance-based products;
- public authorities and central banks.
⚠️ Important nuance: NFT projects structured as collections, fractionalised assets, or repeated issuances may still be regulated. Classification depends on substance, not branding.
Capital Requirements: What Regulators Expect
MiCA introduces minimum own-funds requirements that scale with the risk profile of the services provided.
| CASP Category | Typical Activities | Minimum Capital |
|---|---|---|
| Low-risk services | advisory, portfolio management, order reception | EUR 50,000 |
| Medium-risk services | custody, crypto–fiat exchange, crypto–crypto exchange | EUR 125,000 |
| High-risk services | exchanges and trading platforms | EUR 150,000 |
| Stablecoin issuers | ART / EMT issuance | EUR 350,000 |
When multiple services are combined, regulators apply the highest applicable capital threshold — not an average.
Beyond Capital: What MiCA Really Tests
Many applicants underestimate MiCA by focusing only on documents. In reality, regulators assess operational substance.
Governance and Accountability
- clearly defined management responsibilities;
- appointment of AML/CTF officers and risk owners;
- independent compliance oversight;
- documented decision-making processes.
Financial Crime Controls
- end-to-end KYC and KYB procedures;
- automated and manual transaction monitoring;
- escalation workflows and SAR reporting;
- retention of compliance records.
Client Asset Safeguards
- segregation of client and company assets;
- restricted access to wallets and keys;
- prevention of internal misuse or commingling;
- clear recovery and contingency mechanisms.
Technology and Resilience
- secure system architecture;
- cyber-risk management and incident handling;
- backup and recovery protocols;
- ongoing system testing.
Why 2026 Is the Real Cut-Off Point
MiCA includes a transition period, but 2026 is when enforcement becomes uncompromising.
From that point:
- unlicensed crypto activity becomes a regulatory offence;
- banks and PSPs will terminate relationships with non-CASP entities;
- supervisors will prioritise inspections and substance reviews.
Companies that delay preparation often face rushed applications, rejected filings, or operational freezes.
Practical CASP Licensing Support
AMS is a Prague-based consultancy focused on crypto and fintech regulation under MiCA.
We support CASP licensing as a structured regulatory project, not a paperwork exercise:
- including the assessment of business models and licensing scope;
- CASP classification and capital planning;
- drafting MiCA-compliant AML, risk, IT, and governance frameworks;
- setup of key regulatory functions;
- application preparation and submission to the Czech National Bank;
- regulator communication and follow-up;
- post-authorisation compliance support.
Why Companies Choose Us
- realistic timelines and transparent methodology.
- narrow focus on MiCA and crypto regulation;
- practical experience with CASP substance reviews;
- multilingual team (EN / CZ / RU / UA);
- end-to-end responsibility;
CASP Licensing: Key Questions Answered
How long does the CASP process take?
Usually between 6 and 12 months, depending on complexity.
Is a physical presence in the Czech Republic required?
Yes. Local operational substance is mandatory.
Must key personnel be locally accessible?
Yes. Regulators expect real availability, not nominal appointments.
Can capital be injected after submission?
No. Capital must be in place before filing.
Can several CASP services be combined?
Yes, but capital and controls follow the highest-risk service.
When should preparation start?
Ideally at least 6–9 months before submission.
