The cryptocurrency market is developing rapidly, attracting millions of users, investors, and companies around the world. The European Union has introduced new rules to regulate the crypto industry, and the key concepts in this area are MiCA, VASP, and CASP.
Key concepts
• MiCA (Markets in Crypto-Assets) - a European Union regulation that establishes common rules for the issuance, circulation, and provision of services related to crypto-assets. Its main goal is to make the crypto market more transparent, secure, and understandable for all participants. Thanks to MiCA, companies receive clear requirements for their activities, while users benefit from better protection of their rights.
• VASP (Virtual Asset Service Provider) - a term introduced by the international organisation FATF. It refers to companies that provide services related to the exchange, custody, or transfer of virtual assets. VASPs are subject to requirements aimed at preventing money laundering and terrorist financing. Currently, this term is gradually becoming outdated and is used less frequently.
• CASP (Crypto-Asset Service Provider) - a new term used in EU legislation following the introduction of MiCA. It refers to providers of crypto-asset services that operate in accordance with European regulatory requirements. To obtain CASP status, a company must go through a licensing process and comply with established standards of security, transparency, and risk management.
In simple terms:
MiCA sets the regulatory framework → CASP operate under these rules → VASP is a term that was historically used to describe similar companies but is gradually being replaced.
Therefore, the introduction of MiCA has become an important step in the development of the European crypto market. The new rules not only structure the activities of crypto companies but also provide better protection for users. That is why understanding the concepts of MiCA, VASP, and CASP is essential for understanding how the modern crypto industry operates.
Author:
Olena Davidoglo,
Junior Manager of Consulting Department at Lextensio
