CASP Crypto License in Luxembourg

Luxembourg, a top-tier European financial center, is now fully aligned with the Markets in Crypto-Assets Regulation (MiCA), which came into force on 30 December 2024. Businesses providing crypto-asset services in or from Luxembourg must now apply for a Crypto-Asset Service Provider (CASP) licence through the Commission de Surveillance du Secteur Financier (CSSF) — Luxembourg’s financial regulator.

Why choose Luxembourg?

• Strategic EU location – Centrally positioned in Europe with excellent connectivity to global finance and fintech hubs
• Trusted regulatory system – CSSF is internationally recognized for clear and reliable supervision, ensuring stability and transparency
• World-class financial infrastructure – Home to major banks, investment firms, and digital finance innovators
• Passporting rights – A CASP licence from Luxembourg allows seamless provision of services throughout the EU/EEA
• Attractive tax regime – Competitive corporate tax treatment and structured opportunities for international tax planning

Services requiring a CASP licence

Under MiCA, a CASP licence is mandatory for firms offering:

• Crypto-to-fiat or crypto-to-crypto exchange
• Custody and wallet management
• Execution or transmission of orders
• Operation of crypto trading platforms
• Crypto lending, marketing, or distribution
• Investment advice and portfolio management involving crypto-assets

Key licensing requirements

• Luxembourg legal entity – Typically a Société à responsabilité limitée (Sàrl)
• Local presence – Physical office and at least one executive director based in Luxembourg or the EU
• Capital requirements –
• €50,000 for advisory or agency services
• €125,000 for exchange or custody services
• €150,000–€350,000 for platform operation or multiple services
• Fit & proper management – Clean criminal records, professional qualifications, and demonstrable experience in financial services, IT, or crypto
• AML/CFT compliance – Full framework including internal controls, transaction monitoring, sanctions screening, and suspicious activity reporting to the Luxembourg FIU
• IT and security policies – Systems aligned with MiCA’s operational resilience, cybersecurity, and business continuity standards
• Beneficial ownership transparency – UBOs must be disclosed in the national register

Application process & timeline

• Initial consultation with CSSF (optional but advised)
• Full documentation submission: business plan, AML policies, governance framework, IT security docs, financial projections
• Regulatory timeline:
• 25 business days for completeness check
• 40 business days for decision (extensions possible)
• Total licensing process: 4–7 months

Ongoing obligations

• Maintain minimum capital levels in real time
• Submit annual audits, risk reports, and financial statements to CSSF
• Report suspicious transactions to the FIU without delay
• Comply with MiCA’s consumer protection and market integrity standards
• Retain records of KYC and transactions for at least five years

How Demire Inc supports your CASP licence in Luxembourg

• Incorporation of Sàrl legal entity
• Drafting and submission of the full CASP application package
• AML policy development and compliance officer support
• Strategic consultation on governance, IT security, and operations
• Ongoing compliance, audit preparation, and reporting assistance

Launch your crypto business in Europe’s financial capital.
Demire Inc ensures that your Luxembourg licensing journey is efficient, compliant, and positioned for long-term success.