CASP licensing: navigating crypto regulations

When working with CASP licensing, the set of legal permissions that let a company offer crypto‑related services such as exchanges, custodial wallets, or token issuance. Also known as Crypto Asset Service Provider licence, it helps regulators enforce consumer protection, market integrity, and anti‑money‑laundering standards.

One of the biggest drivers behind this framework is the Financial Action Task Force (FATF), an intergovernmental group that creates AML and counter‑terrorist financing policies for the global financial system. FATF’s “travel rule” forces CASPs to transmit user data when moving assets across borders, which directly ties into Know Your Customer (KYC), the process of verifying a client’s identity before allowing them to trade or store crypto. Together with Anti‑Money‑Laundering (AML), the suite of laws designed to detect and prevent illicit fund flows, these pillars form the compliance core that any crypto service provider must embed into its technology stack and operational policies.

Key components you’ll encounter in a CASP licence

First, regulators demand a clear governance structure. That means a documented board, defined roles, and audit‑ready procedures. Second, technical safeguards such as multi‑signature wallets, real‑time transaction monitoring, and secure API gateways are mandatory to meet the FATF travel rule and AML reporting thresholds. Third, ongoing reporting is non‑negotiable: monthly suspicious activity reports, annual financial statements, and periodic external audits keep the licence active. Finally, consumer protection clauses, like insurance coverage for custodial assets and transparent fee disclosures, are increasingly part of the licensing checklist, especially as DeFi platforms try to bridge into the regulated space.

All this can feel overwhelming, but the good news is that the industry now offers templates, consulting services, and automated compliance suites that handle KYC checks, AML screening, and FATF‑compatible data exchange. In the rows below you’ll find guides on stablecoins, cross‑chain bridges, risk management, and more – each touching on how CASP licensing influences product design, market strategy, and legal risk. Dive in to see practical examples, learn what regulators look for, and get a roadmap for getting your crypto business licensed and ready for growth.