A crypto license in Europe is both a crucial starting point for novice businesses and a means of expanding the scope of their services for experienced companies. In a relatively new and only partly explored sector like crypto, gaining the trust of banks and clients alike should be the primary concern of every company owner.
Obtaining a VASP license is mandatory for businesses that provide financial services using virtual assets, including exchanges, custodial wallets, and payment processors. A crypto license is crucial for legally providing crypto services, which helps build customer trust and mitigates legal risks. Licensed entities can facilitate financial transactions involving the transfer, exchange, or movement of virtual assets within regulatory frameworks.
Obtaining a crypto license in Europe can notoriously work as proof of the lawfulness of a crypto exchange platform. It ensures compliance with strict regulatory frameworks, including AML (anti-money laundering), KYC (know-your-customer), and CTF (counter-terrorism financing) requirements. Regulatory compliance is essential for building trust with stakeholders and facilitating market access. These measures are essential to maintain transparency and trust in the crypto industry. Additionally, having a VASP license minimizes legal risks by mandating adherence to these stringent procedures.
- Standardized Requirements
- High Reputation
- Reasonable Costs
- Possibility to open a bank account
Requirements to get a crypto license in Europe
The main part of getting a license for crypto business in Europe is complying with the licensing requirements. Jurisdictions who are member states of the European Union are now all required to comply with the MiCA regulation.
Existing VASPs and crypto companies operating in these jurisdictions are now required to prepare an application for a CASP license, to comply with MiCA. MiCA introduces the concept of a Crypto-Asset Service Provider (CASP) license, which will replace the previously applied VASP model in EU countries.
This single licensing framework, known as CASP licensing, aims to standardize regulations across the EU, simplifying operations for businesses by providing a unified framework for crypto-asset service providers and allowing for trans-national passporting, a license being recognized by all other EU countries.
Past national licenses (and existing, for non-EU states) can differ from MiCA requirements and may be more stringent. VASP license requirements can vary significantly from country to country, impacting the ease of setting up a crypto business depending on the jurisdiction.
The regulatory landscape in Europe is being standardized under MiCA, which took full effect by 2024, imposing uniform licensing requirements across all EU member states. For our readers and clients who are concerned by this situation, we put out a guide on how to prepare your company for MiCA.
For this reason, we now distinguish the non-EU VASP (Virtual Asset Services Providers) such as the UK or Switzerland, from the EU CASP such as Estonia.
Most Europe crypto exchange license has the following basic requirements:
- Forming a limited liability company in Europe (sometimes in the licensing country), establishing a legal entity in the licensing jurisdiction;
- A starting share capital;
- Legal address in Europe;
- Appointment of qualified personnel as a director (has to be resident in some countries) who meet specific industry qualifications and regulatory standards;
- Appointment of an AML officer (has to be resident in some countries) who often serves as the compliance officer responsible for ensuring regulatory adherence and to fulfil the AML-KYC duties (in some cases this can be performed by the director);
- Compliance with the AML/KYC policy and procedures, based on the 5th EU directives on AML;
- Filling out all the application documents stated by the licensing authority;
- Other specific requirements depending on the country.
The evolving regulatory framework in Europe is shaping the licensing requirements for crypto businesses, making it essential to stay updated on changes to maintain compliance. This is where an experienced partner like LegalBison ensures the legality and safety of your venture.
Europe is one of the best reputed area to register a crypto company
Crypto companies and crypto exchanges in particular started to gain more and more traction back in 2017, when Estonia, in Northern Europe, became the first country in the world to design and offer a comprehensive crypto license. However, Estonia has recently tightened its VASP licensing framework, making it more challenging for companies to meet the updated requirements.
Europe is a highly reputable place on the global crypto market for establishing businesses in virtual assets and adjacent spheres, specifically crypto launchpads. European jurisdictions are comparatively way more trusted on the global scale but at the same time, contrary to what might appear as a given, most of them have lenient requirements for candidates.
Key EU jurisdictions such as Estonia, France, and Germany are considered important centers for crypto licensing under MiCA, offering specific regulatory advantages and established procedures. Operating in regulated jurisdictions is crucial for ensuring legal compliance and gaining access to local and EU-wide markets.
Since 2025, European countries who are member states of the European Union apply the MiCA regulation and progressively unrolling their updated framework. Since January 1st, it is possible to already apply for a MiCA license in Estonia, for example.
The CASP license becomes the standard for the entire EU, ensuring uniform rules and the ability to operate throughout Europe. Europe’s stable regulatory environment supports innovation and provides confidence for crypto businesses seeking long-term growth.
The cost of registering and running a crypto company in Europe
Another compelling reason to choose a Europe crypto license is its comparatively low cost. The pricing for creating a crypto trading or crypto exchange company in Europe is moderate compared to the majority of other jurisdictions, such as North America or high-end Asian countries like Singapore, Hong Kong or Taiwan.
Securing a European VASP license protects businesses against fines, penalties, and operational shutdowns due to non-compliance. Obtaining a crypto license in Europe can also help a business expand globally by providing access to international markets and enabling efficient cross-border operations through passporting rights or mutual recognition agreements. Proper licensing is essential for building a sustainable crypto business, ensuring legal compliance, regulatory approval, and long-term operational stability in the evolving crypto industry.
In addition, unlike in these jurisdictions, the annual regulatory requirements such as accounting, license and company renewal, AML officer services and other personnel, are substantially cheaper in certain European countries.
All in all, the costs of obtaining a European VASP or CASP license remain attractive for novice business owners who are not ready to spend millions on starting a crypto trading platform.
While foreseeing the future changes in pricing policies of different licensing jurisdictions, LegalBison is always geared up to guide clients through the company formation process in a cost-effective way. Lithuania has a fast and cost-effective VASP registration process, typically completed within 1-3 months.
Banking services for a crypto company in Europe
Last but not least, a European crypto license entails an opportunity to open a corporate bank account in the licensing country. Most jurisdictions require licensees to deposit their starting share capital in a local bank as part of the application procedure. The CASP license allows companies to operate throughout the EU thanks to the passporting principle, which simplifies market access.
Having a VASP or CASP license facilitates access to financial institutions and banking services, making it easier for crypto businesses to establish partnerships and credibility within the regulated financial ecosystem. Regulatory compliance is crucial for building relationships with traditional financial institutions such as banks, which often require proof of compliance before collaborating with crypto firms.
This local bank account can and should be further used for all types of corporate expenses. Only in this way can a regulatory authority supervise all the inbound and outbound payments of the company, as well as prevent potentially fraudulent operations. Regular financial reporting is required to demonstrate compliance and financial stability to regulators. A VASP license confirms that a company operates legally and complies with established rules to protect against financial abuse.
Needless to say, a crypto trading or exchange platform gains the double trust of the potential customers when it owns an account in one of the European banks.
