How to Apply for a CASP License in the EU: Step-by-Step Guide
How to Apply for a CASP License in the EU: Step-by-Step Guide
Blog Article
As copyright regulation tightens in the European Union, obtaining a CASP (copyright-Asset Service Provider) license is now essential for businesses offering copyright-related services. Under the EU’s MiCA (Markets in copyright-Assets) regulation, this license grants legal permission to operate across all member states.
While applying for a CASP license might seem complex, it becomes manageable with a structured approach. This article provides a clear, step-by-step guide to help you understand how to successfully apply for a CASP license in the EU.
Step 1: Choose the Right Jurisdiction
Your first step is to decide which EU member state to register in. The CASP license is granted at the national level but allows passporting throughout the EU once approved.
Popular choices include:
Estonia – Fast registration and tech-friendly regulators
Lithuania – Simple procedures, low taxes, and English-speaking staff
Cyprus – Strong financial sector with clear copyright licensing
Malta – A well-established jurisdiction for copyright firms
Each country has its own approach to interpreting MiCA, so consult local legal experts to choose the one that best fits your business.
Step 2: Form a Legal Entity in the EU
To apply for a CASP license, your business must be legally incorporated in an EU country. This involves:
Registering a company (e.g., LLC or joint-stock company)
Appointing a board of directors
Opening a business bank account in the EU
Renting a physical office space (required for most jurisdictions)
You’ll need to prove to regulators that the company is not a shell and has genuine operations in the selected member state.
Step 3: Prepare Required Documentation
This is the most intensive part of the process. Your CASP application must include a wide range of documents. These typically include:
Business Plan
Description of services (trading, custody, exchange, etc.)
Revenue model and target markets
Risk management approach
Internal Policies
AML/CFT policies
Data protection and cybersecurity policies
Operational and compliance manuals
Organizational Chart
Structure of your team and reporting lines
CVs and Background Checks
Resumes of directors, MLROs, and compliance officers
Certificates of good conduct or police clearance
Financial Statements
Projected income and expenses for 3 years
Evidence of initial capital and liquidity
IT and Security Overview
Infrastructure for storing customer assets
Technical measures for preventing data breaches
Having a strong documentation package significantly increases your chances of approval.
Step 4: Appoint Key Personnel
The MiCA regulation requires that CASPs employ qualified and experienced professionals, particularly in the following roles:
Executive Directors – responsible for overall management
Compliance Officer – ensures day-to-day regulatory compliance
MLRO (Money Laundering Reporting Officer) – handles AML reporting
Risk Manager – oversees security, liquidity, and operational risks
These individuals must be full-time and reside in the country of incorporation. Regulators will conduct a “fit and proper” test to ensure they are suitable.
Step 5: Submit the Application to the Financial Regulator
Once all documents are ready, submit your application to the national financial authority. Examples include:
Estonian Financial Intelligence Unit (FIU)
Lithuanian Financial Crime Investigation Service (FCIS)
Cyprus Securities and Exchange Commission (CySEC)
Malta Financial Services Authority (MFSA)
The submission may be online or via secure document delivery systems. Some regulators may request a pre-submission meeting to clarify your business model.
Step 6: Respond to Follow-Up Requests
After reviewing your application, the regulator may request:
Clarifications on internal policies
Additional financial documentation
Proof of office lease and staff employment
Updates to your AML procedures
Responding promptly and clearly to all queries shows professionalism and increases the chances of swift approval.
Step 7: License Approval and Publication
If your application is successful, you will receive a CASP license certificate and be listed in the national and EU-wide registry of authorized copyright providers.
This approval allows you to:
Operate your services legally in the EU
Begin onboarding users
Access EU financial institutions and partners
Apply for passporting rights to serve clients in other EU countries
Note: you may need to pay a license issuance fee before final approval is granted.
Step 8: Maintain Ongoing Compliance
Getting the CASP license is just the beginning. You must:
File annual financial and audit reports
Keep AML and KYC processes updated
Report suspicious transactions
Notify the regulator about major company changes (like new directors or service expansions)
Cooperate during inspections or audits
Failure to meet these obligations can lead to fines or license revocation.
How Long Does the Process Take?
The timeframe varies by country and service complexity, but a typical timeline looks like this:
Company formation: 2–4 weeks
Document preparation: 4–8 weeks
Application review and approval: 3–6 months
Total: 5 to 8 months, assuming all documents are in order.
Final Tips for a Successful Application
Hire local legal counsel: Regulations vary widely between countries.
Don’t cut corners: Thorough AML and compliance policies are crucial.
Be transparent: Regulators prefer open and cooperative applicants.
Stay informed: MiCA updates may evolve; stay ahead with ongoing legal advice.
Applying for a CASP license is a serious commitment, but it's a strategic move that will position your copyright business for long-term growth in the European market.
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