When a crypto company wants to operate legally in the UK or across the EU, it doesn’t just need a website and a wallet—it needs CASP authorization, a regulatory status that lets crypto businesses offer services like trading, custody, or exchange under official oversight. Also known as Crypto Asset Service Provider registration, it’s the legal gateway to serving customers without getting shut down by regulators. This isn’t optional. If you’re running a platform that handles crypto for others—whether it’s swapping tokens, holding keys, or offering leverage—you’re already in the crosshairs of financial authorities.
CASP authorization is closely tied to VASP registration, a broader global term for entities that provide services involving virtual assets. In the UK, CASP is the local version of VASP rules under the FCA. In the EU, it’s part of MiCA—the Markets in Crypto-Assets regulation that’s rolling out across member states. Both demand the same core things: proof of financial stability, anti-money laundering controls, clear business plans, and full transparency about who owns and runs the company. The Travel Rule, which forces exchanges to share sender and receiver data on transfers over €1,000, is one of the most common reasons applications get rejected. Most companies fail not because they’re shady, but because they don’t understand how deep the paperwork goes.
Real-world examples show why this matters. Platforms like ZBX Exchange and Sovryn aren’t just tech projects—they’re regulated entities. If they didn’t have CASP or equivalent status, they’d be blocked from serving UK or EU customers, just like dYdX blocks users in those regions. Even if a platform claims to be "decentralized," regulators still look at who controls the front end, the wallet infrastructure, or the customer support team. If real people are answering questions or managing funds, the law sees them as a service provider—and they need a license.
For businesses, CASP isn’t just a hurdle. It’s a signal. Customers trust platforms that show they’ve passed official checks. For users, it means your funds are handled by someone legally accountable. And for regulators, it’s how they track money flows in a space that used to be completely opaque. The posts below show how this plays out in practice: from UK firms fighting to get approved, to scams that avoid registration entirely, to how crypto exchanges hide behind "decentralized" labels while still enforcing geo-blocks. You’ll see what compliance really looks like—and what happens when companies skip it.
MiCA’s transition periods for EU crypto businesses vary by country, with deadlines as early as mid-2025. Missing deadlines means shutdowns. Cross-border operators must comply with the shortest deadline. Only licensed firms get passporting rights.
