Introduction to CASP Licensing
The Markets in Crypto-Assets Regulation (MICA) introduces comprehensive requirements for Crypto Asset Service Providers (CASPs) operating in Poland and the broader European Union. This regulatory framework aims to ensure consumer protection, market integrity, and financial stability in the crypto-assets sector.
CASP License Requirements
- Minimum capital requirements based on service types offered
- Robust governance and organizational structure
- Risk management and internal control systems
- IT infrastructure and cybersecurity measures
- Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures
- Professional indemnity insurance coverage
- Conflict of interest policies
Step-by-Step CASP License Application Process
- Initial Assessment
- Evaluate service offerings against MICA requirements
- Conduct gap analysis of existing operations
- Prepare preliminary documentation
- Documentation Preparation
- Business plan and strategy
- Operational procedures and policies
- Risk assessment and management framework
- Technical infrastructure documentation
- Application Submission
- Submit application to Polish Financial Supervision Authority (KNF)
- Pay required application fees
- Provide supporting documentation
- Review Process
- Regulatory review period (up to 3 months)
- Respond to additional information requests
- Make necessary adjustments to application
- Post-License Requirements
- Implement compliance monitoring systems
- Regular reporting to authorities
- Maintain ongoing compliance with MICA requirements
Converting Existing VASP License to CASP License
Existing Virtual Asset Service Providers (VASPs) must transition to the new CASP framework under MICA regulations. Here’s the conversion process:
- Gap Analysis
- Review current VASP license requirements versus CASP requirements
- Identify areas requiring updates or modifications
- Compliance Updates
- Update policies and procedures to meet MICA standards
- Enhance technical systems if required
- Strengthen governance frameworks
- Conversion Application
- Submit conversion application to KNF
- Provide evidence of existing compliance
- Document planned updates to meet new requirements
Ongoing Compliance Requirements
- Regular audits and assessments
- Continuous monitoring of regulatory changes
- Staff training and development
- Periodic reporting to supervisory authorities
- Maintenance of required capital reserves
Note: Requirements and processes may be subject to updates as MICA implementation progresses. Entities should consult with legal professionals and regulatory authorities for the most current requirements.
