Investor Shelf
Library/EuZ – Zeitschrift für Europarecht

The Authorisation of Crypto-Asset Service Providers (CASPs) in the EU Under the Markets in Crypto-Assets Regulation (MiCAR) (EuZ – Zeitschrift für Europarecht)

Research paperEuZ – Zeitschrift für EuroparechtNovember 202631 pages47 min readChristos V. GortsosOriginal source
Key number
EUR 150,000
Class 1 and Class 3 Minimum Capital p.7
Key number
10%
Qualifying Holding Threshold p.9
Key number
25 working days
Application Completeness Review Period p.12

Summary

  • Title V of Regulation (EU) 2023/1114 governs crypto-asset service providers across all Member States starting from 20 December 2024.p.3
  • The minimum capital requirement applicable to a CASP authorized to provide both Class 1 and Class 3 services is EUR 150,000.p.7
  • A qualifying holding in a CASP is defined as representing at least 10% of the capital or voting rights.p.9
  • National competent authorities must assess the completeness of an application within 25 working days of receipt.p.12
  • The deadline for the assessment of compliance with Title V by NCAs is 40 working days from receiving a complete application.p.12
  • Suspension of the assessment period while awaiting missing information requested by NCAs shall not exceed 20 working days.p.13
  • CASPs must keep records of all crypto-asset services, activities, orders, and transactions for a standard period of 5 years.p.20

Key insights

  1. Authorisation as a CASP granted by a home Member State NCA provides a single passport valid across the entire EU and EEA.p.6
  2. Prudential safeguards require CASPs to hold capital equal to at least the higher of permanent minimum capital or one quarter of the fixed overheads of the preceding year.p.7
  3. Authorisation must be refused if close links between an applicant CASP and other persons prevent the effective exercise of supervisory functions.p.13
  4. The joint ESMA and EBA suitability guidelines apply to members of the management body of CASPs starting from 4 February 2025.p.15
  5. Applicant CASPs have a right to judicial appeal if an NCA fails to take a decision on a complete application within 6 months of submission.p.18
  6. CASPs must establish business continuity plans and resilient ICT systems pursuant to the Digital Operational Resilience Act.p.19
  7. NCAs may require CASPs to maintain operational records for up to 7 years upon request.p.20
  8. CASPs must conduct an annual review of their conflicts of interest policies and publicly disclose potential conflicts in electronic format.p.22

Topics and entities

EuropeBankingCrypto and stablecoinsRegulationEuropean Banking AuthorityEuropean Securities and Markets Authority

Summary and figures generated from the document and checked automatically: every number shown appears on the cited page. The full document is available from the publisher. Publishers can request removal.