CASP AML
Understanding the European Digital-Asset Regulatory Environment
The Knowledge Centre provides practical explanations of the regulatory and compliance environment surrounding crypto-assets in Europe.
The European regulatory framework for crypto-assets is built around several interconnected areas.
MiCA
The Markets in Crypto-Assets Regulation, Regulation (EU) 2023/1114, establishes a harmonised framework for crypto-assets and crypto-asset services within the European Union.
MiCA covers, among other areas:
- Crypto-asset service providers
- Certain crypto-asset issuers
- Asset-referenced tokens
- E-money tokens
- Market integrity
- Client protection
- Governance
- Prudential safeguards
- Transparency and disclosures
AML/CFT
Anti-money laundering and counter-terrorist financing requirements address the risk that financial systems and digital-asset services may be used to facilitate money laundering, terrorist financing and related financial crime.
National Competent Authorities
National authorities remain responsible for many authorisation and supervisory functions.
The relevant authority depends on the Member State and the type of activity.
European Supervisory Authorities
European authorities such as ESMA and EBA contribute to regulatory convergence, technical standards, guidance and supervisory cooperation.
AMLA
The Authority for Anti-Money Laundering and Countering the Financing of Terrorism strengthens EU-level AML/CFT coordination and supervision.
REGULATORY AUTHORITIES
Who Does What?
Understanding the difference between European institutions and national regulators is essential.
ESMA
The European Securities and Markets Authority is an EU authority focused on investor protection, effective and orderly markets and financial stability.
In the MiCA framework, ESMA supports supervisory convergence, develops regulatory and implementing measures within its mandate and maintains EU-level registers.
ESMA does not replace national competent authorities for all CASP authorisation and supervision functions.
AMLA
The Authority for Anti-Money Laundering and Countering the Financing of Terrorism coordinates and strengthens the EU AML/CFT supervisory framework and supports cooperation between Financial Intelligence Units.
AMLA's responsibilities include developing regulatory instruments, supporting supervisory convergence and, under its mandate, directly supervising selected high-risk cross-border financial entities.
AMLA does not issue commercial "AML certificates" or approval certificates to companies.
National Competent Authorities
National competent authorities are responsible for authorisation and supervision within their respective jurisdictions according to applicable EU and national law.
CSSF
In Luxembourg, the Commission de Surveillance du Secteur Financier (CSSF) is the relevant financial-sector supervisory authority for CASPs within its MiCA responsibilities.
The CSSF maintains information and registers relevant to supervised crypto-asset entities in Luxembourg.