CASP and VASP licenses: what’s the difference and which one does your business need?

The Regulatory Shift in Crypto

With the entry into force of the Markets in Crypto-Assets Regulation (MiCA) in the European Union, the legal landscape for crypto companies is changing rapidly. Until now, many crypto exchanges and service providers operated under a VASP (Virtual Asset Service Provider) registration. However, under MiCA, this framework is being replaced by the CASP (Crypto-Asset Service Provider) license.

For businesses, understanding the difference between these two licenses is essential for compliance and long-term strategy.

What Is a VASP License?

The VASP license (Virtual Asset Service Provider) is currently used in many EU countries (such as Poland, Lithuania, and Estonia) to regulate businesses that:

• Operate crypto exchanges (crypto-to-crypto and fiat-to-crypto)
  
  
• Provide custody or wallet services
  
  
• Facilitate crypto transfers and payments
  
  
• Offer AML/KYC-compliant services
  
  

👉 The VASP framework was designed as a quick and affordable entry point into the regulated crypto market. However, it is often lighter in requirements, with lower capital thresholds and simplified reporting compared to MiCA standards.

What Is a CASP License?

The CASP license (Crypto-Asset Service Provider) is the new EU-wide standard under MiCA, and it goes far beyond VASP registration. A CASP license allows companies to:

• Provide exchange and custody services
  
  
• Issue and trade crypto-assets (including tokens and stablecoins)
  
  
• Offer investment and advisory services in digital assets
  
  
• Operate across the entire EU under a single license (passporting rights)
  
  

Key requirements include:

• Authorized share capital contribution (amount varies by activity type)
  
  
• Stricter AML/CTF compliance and ongoing audits
  
  
• Strong consumer protection measures
  
  
• Approval and supervision by the national financial regulator (e.g., Bank of Lithuania, KNF in Poland)
  
  

👉 CASP is essentially the crypto equivalent of an EMI or investment license – high credibility, but also higher costs and obligations.

VASP vs CASP – Key Differences

Which One Does Your Business Need?

• If you are a startup or SME launching a crypto exchange or wallet service in 2025 → a VASP license may still be sufficient, especially during the transition period under MiCA.
  
  
• If you are planning a large-scale operation, token issuance, or pan-European crypto platform → you will need a CASP license to ensure compliance and credibility across the EU.
  
  

Many companies are starting with VASP registration to enter the market quickly, and later upgrading to CASP once they grow and attract investors.

Final Thoughts

The shift from VASP to CASP licensing marks the professionalization of the European crypto market. While CASP is more demanding, it also provides higher trust, EU-wide access, and investor confidence.

📩 Contact us today — our legal team will guide you through the VASP-to-CASP transition, assist with documentation, and ensure your crypto business remains fully compliant under MiCA.