Choosing the Right Crypto License: What are the Differences Between VASP, CASP, and DASP?

At first glance, the formula of crypto licensing frameworks is simple: you need a license to operate as a crypto business anywhere in the world. This permit operates exactly like a banking license or a driver’s license, which allows you to conduct certain activities or offer services safely and maintain credibility.

In essence, the license is a “seal of approval” that demonstrates that your company has been accepted and legitimized by the government. This seal ensures the legitimacy of your business on a global scale and provides trustworthiness in the eyes of shareholders, investors, and customers. 

There is no single, universal type of crypto license accepted in the world. This permit is expressed through multiple frameworks, which depend on the location (jurisdiction of registration) and local regulatory practices. 

The most relevant example is the current MiCA transition in the EU, which obliges all EU-registered crypto businesses to transition to the CASP framework by July 2026.

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What is a Virtual Asset Service Provider (VASP)?

Looking at the VASP meaning, this is the most widespread and all-encompassing definition of a licensed crypto entity.

Unlike CASP, it is not limited solely to the European Union: this framework is present all over the world, in every country that provides crypto authorization and licensing in one form or another.

Your crypto company can be legally classified as a Virtual Asset Service Provider (VASP) if it provides such services as exchange (on/off ramping), trade (swapping one crypto to another), transfer services, crypto custodial (storing or holding private keys for someone else), and token issuance (ICO/ITO). 

In essence, the VASP meaning is global. It defines what your company is and under what umbrella it operates in the eyes of the world. 

Unlike DASP and CASP, which have narrower definitions, VASP can be applied to any crypto company or legal person that is currently operating under the VASP framework in any of the countries worldwide.

Here are the key points to remember about the VASP framework and registration process:

• FATF Connection. The Financial Action Task Force (FATF) is an international organization that sets global standards to prevent money laundering and terrorist financing. It created the term VASP to define which crypto businesses must follow the FATF Recommendations. While the FATF does not issue licenses itself, it requires national governments to regulate any company and/or legal person categorized as a VASP;
• Global Recognition. Because “VASP” is an FATF term, having a VASP registration in a respected jurisdiction (like the UK or BVI) is often recognized by international banks, making it easier to get a corporate bank account;
• Registration vs. Licensing. In many countries, you don’t just “apply for a license”; you “register as a VASP company”. This involves proving to the local regulatory authority that you have strong Anti-Money Laundering (AML) software and a dedicated Compliance Officer.

It is worth noting that licensed crypto entities in the EU that still haven’t finalized their CASP transition according to the MiCA requirement are still considered VASPs. 

Starting from December 30, 2024, the EU Member States no longer accept VASP licensing applications. The previous framework has been fully replaced by the MiCA registration procedure. 

Now, if you decide to base your business anywhere in the European Union, you will have to apply for the CASP status instead. It may or may not be different if you consider doing crypto business in Asian countries, for example.

Alternatively, multiple offshore jurisdictions offer VASP registrations for cryptocurrency industries, for example:

• The Cayman Islands
• The British Virgin Islands (BVI)
• Seychelles
• Mauritius, and others.

What is a Digital Asset Service Provider (DASP)?

A DASP (Digital Asset Service Provider) is a specific type of license primarily issued by countries like France and El Salvador to countries that handle crypto assets. The framework was initially developed in France, where it is generally known as PSAN (Prestataire de Services en Actifs Numériques). 

A noteworthy fact is that Binance, the largest global cryptocurrency exchange platform, chose French DASP as its primary European license.

If you are looking to register in France in 2026, you should know that the DASP framework is being gradually phased out. Existing French companies can still use their DASP status until July 1, 2026, but they are currently in a “fast-track” process to upgrade to the new European CASP license.

Basically, ever since the enforcement of MiCA’s final leg, you can’t go for the DASP registration in France anymore. Instead, you should apply directly for a CASP authorization. 

What is the main difference between VASP and DASP? 

Technically, DASP is just a “local alternative” of VASP, dependent primarily on the local crypto legislations enforced in countries like France and El Salvador, where this framework dominates.

• VASP (Virtual Asset Service Provider) is the generic term used by the global watchdog (FATF);
• DASP (Digital Asset Service Provider) is the name chosen by the French and Salvadoran governments for their specific legal frameworks.

An interesting fact about DASP is that it was primarily used as the legislative blueprint for the European Union’s MiCA framework. By testing rules on asset segregation and consumer protection in a real-market environment, France provided a proven model for unified European regulation.

This established a foundation that allowed the EU to move from fragmented national laws to a single and powerful CASP license.

Consequently, entrepreneurs who initially complied with DASP standards now benefit from a streamlined transition into the broader European market, in step with the MiCA enforcement and adoption process. 

As such, the DASP meaning for the unification of European crypto regulation cannot be overestimated.

What is a Crypto Asset Service Provider (CASP)?

Both VASP and DASP frameworks are now being actively replaced by CASP in the EU. This is due to the enforcement of the Markets in Crypto Assets (MiCA) regulation EU-wide.

If you want to keep operating as a licensed, trustworthy, and legitimate crypto business anywhere in the EU, you must transition to the CASP status under MiCA before July 1st, 2026. 

A CASP license is essentially your “single passport” to the European market, which is the definition of passporting. 

Once you are authorized in one EU member state (e.g., Ireland, Lithuania, or France), you can legally provide your services to customers in all 27 countries without needing to apply for individual local licenses.

However, this convenience comes with a much higher bar for entry than the old VASP registrations. To qualify as a CASP in 2026, your business must meet stricter requirements, including:

1. Minimum Capital. You must hold between €50,000 and €150,000 in reserve, depending on the services you provide, which define your license class (1, 2, or 3);
2. Physical Substance. You must maintain a real office and “effective management” (directors) residing within the EU;
3. Operational Rigor. You are required to follow advanced rules on asset segregation, keeping your company funds strictly separate from your clients’ crypto.

If you intend to register a crypto assets-related business in the EU, you must understand the importance of rigorous compliance. While the rules have been standardized for all Member States to create a unified framework, entrepreneurs still face heavy and nuanced scrutiny both in the application and post-licensing process. 

The CASP meaning is now closely associated with respectability and status. However, it also comes with high stakes.

Switching to the CASP status as an existing VASP business in the EU might be easier, but if you want to build a MiCA-compliant company from scratch, you will need an experienced legal consultant to guide you through every step of the process. 

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Key Comparisons of CASP, VASP, and DASP Crypto Licenses

VASP, DASP, and CASP are the crypto frameworks that differ in their underlying laws, range of allowed activities, and scope (global/national).

To decide which crypto assets license type to opt for, you must first understand the main differences between the three. 

Regulatory bodies

The VASP framework is regulated by local financial authorities following the FATF (Financial Action Task Force) global standards. Every jurisdiction, whether traditional or offshore, that provides VASP authorization must align its local framework with the FATF Recommendations. 

As for the DASP license, it is historically regulated by the AMF in France. In El Salvador, the National Commission for Digital Assets oversees the DASP framework. 

While the DASP regime is being fully replaced by CASP in France as of 2026, it remains active and accepts applicants in El Salvador. 

Finally, the CASP license introduced by MiCA is regulated by national authorities within the EU (like France’s AMF or Ireland’s Central Bank) but overseen by the European Banking Authority (EBA) and ESMA.

Date of introduction

The VASP term was established globally in 2019 when the FATF finalized amendments to its standards to include virtual asset requirements. 

Around the same time, France introduced its national DASP regime through the PACTE Law of May 2019, becoming a pioneer in European crypto regulation. El Salvador later adopted the DASP terminology in 2023 with its Regulation of Digital Assets Services Providers. 

The CASP status is the newest addition, introduced by the MiCA regulation. While phase-one rules for stablecoins came into force in 2024, the full CASP requirements for all service providers became mandatory across the EU by December 30, 2024.

Scope

A VASP registration is strictly jurisdictional, meaning an authorization in one country does not grant the right to operate in another; company founders must apply separately in every territory they target.

Similarly, a DASP registration is limited to its specific national borders, such as France or El Salvador, offering no cross-border legal rights. 

The CASP framework is the only one that provides a “Passporting” right. This allows an entrepreneur authorized in a single EU member state to legally offer their services across all 27 countries in the European Union without further licensing. This makes the CASP option the most flexible and beneficial for entrepreneurs who want to scale globally.

Main activities

Under the VASP and DASP models, regulated activities primarily focus on the exchange between fiat currencies and crypto, crypto-to-crypto trading, and the custody or transfer of digital assets. These frameworks also often cover participation in token issuances like ICOs. 

The CASP framework encompasses all these traditional activities but expands the scope to include more traditional financial services. Specifically, a CASP license can also cover professional investment advice, portfolio management, and the execution of orders on behalf of third parties.

The exact scope of allowed activities depends on the license class you obtain under MiCA. For instance, if you intend to provide advice on crypto-assets or portfolio management services, you should opt for the MiCA license Class 1. 

Regulatory focus

The primary goal of the Virtual Asset Service Provider registration is AML/CFT compliance, focusing heavily on identity verification and the implementation of the “Travel Rule”.

While the DASP regime in France was built on these same AML foundations, it also introduced early standards for cybersecurity and internal controls. 

The Crypto Asset Service Provider (CASP) regime is the most comprehensive of the three, moving beyond basic compliance to focus on prudential requirements.

This means CASPs must maintain specific levels of reserve capital, follow strict governance rules for directors, and implement watertight consumer protection measures like mandatory crypto asset segregation.

Which crypto assets regulations should you go with?

While the CASP regime is being actively integrated all over the European Union, VASP licenses are not pushed out of the crypto market entirely.

In fact, a major part of entrepreneurs still opt for VASP licenses offshore due to a faster and simplified registration process and a permit that still allows them to maintain a good reputation and scale globally. 

As for the DASP license, El Salvador remains a popular offshore crypto assets location for businesses looking for an innovation-friendly environment, tax benefits, and affordable state fees.

The licensing framework you opt for will define the further course of your business. This is why it’s crucial to approach this choice responsibly.

At LegalBison, we operate with years of experience consulting crypto projects around the world on the most beneficial take-off points, including offshore crypto licenses. We take care of the registration process from start to finish and provide ongoing legal support post-licensing.

Refer to us today and speak to an expert who will map out the best route for your crypto assets project.

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FAQ

What is the meaning of CASP?

CASP stands for Crypto Asset Service Provider, a regulatory classification introduced by the European Union’s MiCA regulation. It represents a unified, legal framework that allows a company to provide crypto services across all 27 EU member states with a single license. 

What is VASP used for?

VASP (Virtual Asset Service Provider) is a global designation used to ensure that crypto businesses follow international Anti-Money Laundering (AML) and counter-terrorist financing rules. In the EU, the VASP framework is being actively phased out by the CASP regime. 

What is an example of a virtual asset service provider?

A prominent example of a VASP is a centralized cryptocurrency exchange or CEX, like Coinbase or Binance, which facilitates the buying and selling of digital and crypto assets. 

Who needs a VASP license?

Any business that exchanges, transfers, or safekeeps virtual and crypto assets on behalf of customers is legally required to obtain a VASP license. This includes entrepreneurs launching trading platforms, digital and crypto assets custodians, and even certain decentralized platforms if they maintain administrative control over user funds.

What does DASP mean?

DASP stands for Digital Asset Service Provider, a term specifically used within the national regulatory frameworks of France and El Salvador. In the EU context, the French DASP (or PSAN) was the pioneer regime that established the early standards later adopted by the EU-wide CASP license under MiCA.

How to check the status of DASP?

To verify a French DASP, you can consult the official “White List” on the Autorité des Marchés Financiers (AMF) website, which lists all registered and licensed entities. For El Salvador, you must check the public registry maintained by the National Commission of Digital Assets (CNAD) to confirm a provider’s legal status when it comes to managing crypto assets.