Why Your copyright Startup Needs to Become a CASP Now – Not Later
Why Your copyright Startup Needs to Become a CASP Now – Not Later
Blog Article
In 2025, copyright regulation in Europe is no longer a distant concern—it’s a present reality. With the full implementation of the EU’s MiCA (Markets in copyright-Assets) framework, any company offering digital asset services must operate as a licensed CASP (copyright-Asset Service Provider).
But here's the truth: waiting to become a CASP is a risk most startups can't afford.
Whether you're building a DeFi app, running a centralized exchange, or managing a custodial wallet, this article will explain why you should act now to align with CASP requirements—before you fall behind or get blocked from the EU market altogether.
What Is a CASP and Why Does It Matter?
A CASP is any business that provides services around copyright-assets, such as:
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Operating a copyright exchange
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Holding copyright on behalf of users (custody)
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Facilitating copyright transfers
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Providing portfolio management or investment advice
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Running a token issuance platform
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Executing copyright-related orders or trades
Under the MiCA regulation, all such businesses must be licensed as a CASP to operate legally within the EU.
This is not optional. Failure to register could result in:
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Regulatory fines
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Forced shutdown of operations
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Loss of customer trust
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Frozen access to financial institutions and banking partners
So the question isn't if you should become a CASP—it’s how soon can you?
5 Reasons to Become a CASP Right Now
1. Get Ahead of the Licensing Queue
Regulators across the EU are already receiving license applications from copyright businesses preparing for MiCA. As enforcement begins in 2025, national regulators will be overwhelmed.
By applying early to become a CASP:
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You avoid backlogs
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You get support from regulators during early adoption
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You establish market presence before others do
Licensing isn't instant—it takes months of documentation, review, and adjustments. Don’t let your competitors beat you to it.
2. Protect Your Access to the EU Market
Europe is one of the largest copyright markets in the world. Once MiCA is fully enforced, unlicensed operators will be banned from offering copyright services across the EU.
If your company serves any of the 27 EU countries, or plans to in the future, you must operate as a licensed CASP to continue business legally.
Without it, you will:
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Lose access to EU-based customers
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Be excluded from local banking and payment systems
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Miss out on institutional partnerships
3. Boost Credibility with Investors and Users
Becoming a CASP isn’t just about compliance—it’s also a powerful brand and trust signal.
Here’s how:
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Investors prefer regulated businesses with long-term sustainability
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Partners (like banks and payment processors) require regulatory clarity
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Users feel safer using licensed platforms that protect their assets
Licensing as a CASP proves that your startup is not a fly-by-night project. It shows you’re here to stay—and grow.
4. Access EU Passporting Benefits
One of the biggest advantages of CASP licensing is passporting. Once licensed in one EU country, you can legally expand across all 27 member states without needing a new license for each.
This means:
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You can grow into new countries faster
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You can run a multi-language platform from a single EU base
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You can raise funding more easily with a regional presence
For startups, this is huge. You can launch in Estonia, Lithuania, or France—and expand to Germany, Spain, or the Netherlands with almost no friction.
5. Avoid Legal Risks and Future Penalties
The cost of becoming a CASP is small compared to the cost of enforcement actions. Regulators will crack down on unlicensed operations in 2025 and beyond.
If you operate without CASP registration, you face:
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Business disruption
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Confiscated assets
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Damage to your reputation
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Lawsuits or criminal charges depending on jurisdiction
Early compliance avoids future panic.
What You Need to Become a CASP
Registering as a copyright-Asset Service Provider requires meeting several criteria:
✅ Minimum Capital
Depending on your services, you must have a certain amount of startup capital. For example:
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€50,000 for advisory or transfer services
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€125,000 for custody
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€150,000 for exchanges
✅ Legal and Governance Documents
These include:
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Company registration
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Details of directors and shareholders
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Internal governance policies
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AML/CFT procedures
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Risk management strategies
✅ Technical Infrastructure
MiCA requires robust systems that:
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Prevent cyber threats
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Protect customer data (GDPR compliance)
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Ensure platform uptime and performance
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Allow for audits and transaction tracing
✅ Licensing Application
You’ll submit your documents to a national competent authority (NCA) in one EU country, such as Lithuania’s Bank of Lithuania or Estonia’s FIU.
Where to Get Help with CASP Licensing
The licensing process is complex and varies slightly depending on your services and chosen country. Most copyright founders don’t have the legal and regulatory knowledge to handle it alone.
That’s why working with a professional copyright licensing provider is crucial. A good partner will:
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Assess your business model for CASP eligibility
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Prepare and submit the license application
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Help build internal policies and AML procedures
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Guide your team through regulatory interviews
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Set you up for long-term compliance
Final Thoughts: Don't Wait to Become a CASP
copyright is entering a regulated era. For EU-based operations, there is no future without CASP licensing. But instead of seeing this as a barrier, think of it as a gateway: a path to legitimacy, credibility, and unlimited growth across the European Union.
Whether you're just starting or scaling fast, becoming a CASP today sets the foundation for tomorrow’s success.
Need help getting CASP-licensed?
Visit adamsmith.lt for expert support and fast-track your copyright startup’s path to legal compliance in the EU.