CASP (Crypto-Asset Service Provider)
A Crypto-Asset Service Provider (CASP) is a regulated financial entity authorized under the European Union's Markets in Crypto-Assets Regulation (MiCA — Regulation EU 2023/1114) to provide professional crypto-asset services to clients across the European Single Market. MiCA establishes a harmonized supervisory regime, replacing fragmented national registration frameworks with a single EU authorization standard.
Scope of regulated crypto services under MiCA
Under Article 3(1)(15) of MiCA, authorized CASPs are permitted to provide one or more specific regulated services:
| Regulated CASP Service | Operational and Compliance Scope |
|---|---|
| Custody and Administration | Safekeeping private cryptographic keys and managing client crypto-assets with strict segregation from company assets |
| Operating a Trading Platform | Managing multilateral exchange platforms connecting buyers and sellers of digital assets |
| Exchange of Crypto for Funds / Crypto | Conducting broker-dealer trades converting cryptocurrency against fiat currencies or other tokens |
| Execution & Transmission of Orders | Executing trade orders on behalf of retail or institutional clients with best-execution mandates |
| Portfolio Management & Advice | Providing discretionary asset management or personalized investment recommendations regarding crypto-assets |
EU passporting rights and compliance obligations
Authorization as a CASP grants significant legal and operational advantages across the European Union:
- EU Passporting: Once licensed by its home-state National Competent Authority (such as BaFin in Germany, AMF in France, or Consob/Banca d'Italia in Italy), a CASP can provide cross-border services throughout all 27 EU Member States without establishing separate local subsidiaries.
- Prudential safeguards: CASPs must maintain minimum regulatory capital, professional indemnity insurance, robust cybersecurity architectures (under the EU DORA regulation), and strict anti-money laundering (AML) controls.
- Mandatory tax reporting (DAC8): Regulated CASPs operating in the EU are statutorily required to collect user identities and automatically report transaction data and balances to tax authorities annually.
For practical calculation and tax declaration rules in specific jurisdictions (for example, under Italian tax residency), see our dedicated guides on Calculating Capital Gains and Cost Basis and the Italian Crypto Tax Return Guide.
The information in this article is for general literacy only. It is not tax, legal, financial, or accounting advice and does not replace Agenzia delle Entrate instructions or advice from a qualified professional for your circumstances. It must not be used to evade tax obligations. We make no warranty as to accuracy, completeness, or currency; rules and practice can change. Do not file returns or make decisions based solely on this text. RIXTO is not liable for loss arising from use of, or reliance on, this information.