Regulated activity

Exchange of crypto-assets for funds

Buying or selling crypto-assets against official currency using proprietary capital requires a crypto-asset service provider (CASP) authorisation in the European Union under MiCA Article 3(1)(16)(c) and 3(1)(19). A CASP licence allows passporting across the EEA. Outside the EU, this on-and-off-ramp service requires a virtual asset service provider (VASP) licence or registration with national anti-money-laundering authorities.

Last verified 2026-09-24Markdown · Data (CC BY 4.0)
Exchange of crypto-assets for funds: regulated activityMiCA

Definition

Buying or selling crypto-assets against fiat money using the provider's own capital.

Which licence you need

Licence families that typically permit this activity:

Where it can be licensed

Jurisdictions where exchange of crypto-assets for funds can be licensedCyprusCzech RepublicEstoniaFranceGermanyIrelandItalyLatviaLithuaniaLuxembourgNetherlandsPolandSlovakiaSpainDubai (VARA)Malta
Licences in the Atlas that permit this activity
EU/EEA passportDomestic
Cyprus: Notification by financial entities providing crypto-asset services under MiCAR Article 60✓
Cyprus: Crypto-Asset Service Provider (CASP) authorisation under MiCAR Article 63✓
Czech Republic: Crypto-Asset Service Provider authorisation under MiCA and Act No. 31/2025 Coll. (povolení k činnosti poskytovatele služeb souvisejících s kryptoaktivy)✓
Dubai (VARA): Virtual Asset Broker-Dealer Services Licence✓
Estonia: Authorisation to operate as a crypto-asset service provider under MiCA✓
France: Prestataire de services sur crypto-actifs (PSCA) / Crypto-asset service provider authorization under EU MiCA Regulation✓
Germany: Crypto-asset service provider licence (Zulassung als Anbieter von Kryptowerte-Dienstleistungen nach Art. 59 MiCAR / KMAG)✓
Ireland: Crypto-Asset Service Provider Authorisation✓
Italy: Fornitore di servizi per le cripto-attività / Crypto-asset service provider (CASP) authorization✓
Latvia: Crypto-asset service provider licence under MiCA✓
Lithuania: Crypto-asset service provider licence✓
Luxembourg: Crypto-asset service provider authorisation under MiCA Regulation✓
Malta: Crypto-Asset Service Provider authorisation under Regulation (EU) 2023/1114✓
Netherlands: Crypto-Asset Service Provider (CASP) authorisation under Regulation (EU) 2023/1114 (MiCA)✓
Poland: Crypto-Asset Service Provider authorization under MiCA (zezwolenie na świadczenie usług w zakresie kryptoaktywów)✓
Slovakia: Crypto-asset service provider licence under MiCA (povolenie na činnosť poskytovateľa služieb kryptoaktív)✓
Spain: Proveedor de servicios de criptoactivos (PSC) / Crypto-asset service provider authorization✓

Frequently asked questions

Does a crypto-to-fiat exchange need a separate payment institution licence?

A CASP exchanging crypto for fiat does not automatically require a payment institution licence if it merely receives and pays funds for its own trades. However, holding customer fiat balances long term or providing standalone remittance services triggers payment services regulation under PSD2 or equivalent national regimes.

What anti-money-laundering rules apply to fiat-to-crypto exchanges?

Operators must enforce customer due diligence, source of funds verification, transaction monitoring and travel rule compliance. Regulators require exchanges to verify user identity, screen counterparties against sanctions lists, and retain audit logs to prevent illicit finance when converting sovereign currencies into distributed-ledger tokens.

Last verified 2026-09-24Author Danil Marmysh, Founder & CEO, ProtegraReviewed by Anastasia Sidorenkova, Head of Licensing, ProtegraReport an errorReference information, not legal advice.

Sources

  1. MiCA Art. 3(1)(16)(c) and 3(1)(19) · retrieved 2026-09-24

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