How to Become a Licensed CASP: A Step-by-Step Guide for copyright Startups

Blog Article

The copyright industry is evolving rapidly, and with it comes stricter regulation. One of the key regulatory requirements in regions like the European Union is the CASP license—short for copyright-Asset Service Provider license.

For startups and entrepreneurs in the copyright space, obtaining this license is becoming essential to operate legally and gain user trust. In this guide, we’ll walk you through the step-by-step process of becoming a licensed CASP, including compliance requirements, documentation, and tips for success.

Why Get a CASP License?

Before diving into the process, it’s important to understand why the CASP license is such a game-changer:

Legal Compliance: In jurisdictions like the EU under MiCA, operating without a CASP license is illegal for certain copyright activities.

Customer Trust: A license increases transparency and credibility in the eyes of investors and users.

Banking & Payment Access: Licensed entities are more likely to receive banking support and payment processing services.

International Expansion: A license facilitates cross-border operations within regions that recognize the framework.

Now let’s explore how to get licensed.

Step 1: Identify Your Jurisdiction

copyright regulation is not uniform across the globe. The first step is to choose the jurisdiction in which you plan to register.

Popular regions that offer CASP or equivalent licenses include:

European Union (EU) – under the MiCA regulation

Estonia – an early adopter of copyright licensing

Malta – known for the Virtual Financial Assets Act

Dubai (VARA) – strong regulatory clarity for copyright firms

Singapore – through the Payment Services Act

Choose a country with clear laws, copyright-friendly policies, and low barriers to entry that match your business model.

Step 2: Define Your copyright Services

Not all copyright activities require a CASP license, but many do. You must clearly define which services your company will provide, such as:

Custody of digital assets

Wallet services

Token issuance or listing

Operating a trading platform

Each service may fall under a different licensing module or regulatory requirement. Accurate classification helps streamline the application process and avoid legal pitfalls.

Step 3: Create a Detailed Business Plan

Regulators want to see that you’re running a legitimate, financially sound business. Your business plan should cover:

Company structure and ownership

Target markets and revenue model

Description of copyright services offered

Security protocols and risk management

AML/KYC compliance strategy

Financial forecasts and funding sources

The more detailed and realistic your plan is, the better your chances of approval.

Step 4: Meet the Capital Requirements

Most jurisdictions require CASPs to have minimum capital reserves to ensure they can meet their obligations. These requirements vary depending on:

Type of services offered

Number of clients

Jurisdiction’s financial laws

For example, MiCA may require different capital thresholds for custodial vs. trading services. You must prove your company has adequate starting capital and a plan to remain solvent.

Step 5: Appoint Key Personnel

You’ll need to appoint a few critical roles before applying:

Compliance Officer: Oversees AML/KYC and regulatory adherence

Risk Manager: Identifies and mitigates operational risks

Director(s): Responsible for the company’s strategic direction

Money Laundering Reporting Officer (MLRO): Liaises with financial authorities

These individuals must have the proper qualifications and clean records. In many jurisdictions, their CVs, experience, and criminal background checks will be required as part of the application.

Step 6: Prepare AML/KYC Policies

Anti-money laundering (AML) and Know Your Customer (KYC) protocols are non-negotiable in modern copyright compliance. Your policies must:

Collect and verify customer identity

Monitor transactions in real-time

Flag and report suspicious activity

Follow data protection laws (like GDPR in the EU)

Train employees on financial crime risks

You’ll likely need to integrate third-party KYC/AML software or services, especially if you serve a global client base.

Step 7: Set Up Internal Controls and Security Measures

Security is a top priority for regulators. You'll be expected to show how you protect customer data and digital assets. Include details such as:

Cold storage and multi-signature wallets

Penetration testing and cyber audits

Data encryption and access controls

Business continuity and incident response plans

Without strong internal security, your application may be delayed or denied.

Step 8: Submit the CASP License Application

Once all documents and personnel are in place, you can submit your application to the relevant financial regulator. The submission usually includes:

Application form

Business plan

AML/KYC documents

Proof of capital

Corporate governance documents

Fees and declarations

The timeline for approval can range from 2 to 6 months, depending on the jurisdiction and complexity of your services.

Step 9: Prepare for Ongoing Reporting and Audits

Getting licensed is just the beginning. CASPs must meet ongoing obligations, including:

Periodic financial reporting

Regular AML audits

Cybersecurity reviews

Customer complaint handling

Notifications of material changes in the business

Failing to meet these requirements could result in fines or the revocation of your license.

Step 10: Stay Updated with Regulatory Changes

copyright regulation is still developing. After obtaining your license, it’s crucial to stay up to date with local and international changes. Regulators may revise:

Transaction limits

Reserve requirements

KYC obligations

Tax reporting procedures

Join industry associations, subscribe to regulator updates, and consult with legal professionals to stay ahead.

Final Thoughts

Becoming a licensed CASP is a major milestone in building a compliant, scalable, and trustworthy copyright business. While the process can be complex and time-consuming, it’s a worthwhile investment for long-term success.

Key takeaways:

Choose a copyright-friendly jurisdiction with clear licensing pathways.

Be transparent and well-documented in your operations.

Prioritize AML, KYC, and cybersecurity from the start.

Work with experts—legal advisors, compliance consultants, and audit firms.

The future of copyright lies in regulation—and the CASP license is your copyright to participate in it legally and confidently.

Report this page

HOW TO BECOME A LICENSED CASP: A STEP-BY-STEP GUIDE FOR COPYRIGHT STARTUPS

How to Become a Licensed CASP: A Step-by-Step Guide for copyright Startups