CASP Licensing Requirements

Definition ∞ CASP Licensing Requirements pertain to the legal and regulatory conditions that Crypto-Asset Service Providers must meet to operate legally within a jurisdiction. These requirements typically cover aspects such as capital adequacy, anti-money laundering (AML) and counter-terrorist financing (CTF) compliance, and consumer protection measures. Obtaining such a license grants a CASP the authority to offer services like exchange, custody, or transfer of digital assets.
Context ∞ CASP Licensing Requirements are a central point of regulatory focus globally, with jurisdictions increasingly implementing specific regimes to govern digital asset businesses. A key debate involves the scope of these requirements, particularly regarding decentralized finance protocols and non-custodial services. Future developments will likely include more standardized international guidelines and stricter enforcement to mitigate risks associated with illicit financial activities.