Crypto license in Italy

What Are the Advantages of a CASP License in Italy?

An Italian CASP licence provides access to the EU market following the MiCA notification procedure. A separate CASP authorisation in each member state is not required. Also, the Italian regulatory authorities have a strong status, which can be advantageous when establishing business relationships and communicating with EU banks. Being approved by Italian regulators proves a CASP meets compliance requirements and institutional-grade standards.

What Are the Requirements for Obtaining a CASP License in Italy?

To obtain a CASP license in Italy, a service provider must:

• register a legal person or other undertaking established in the European Union;
• have direct and indirect holders of qualifying holdings satisfying the applicable regulatory requirements;
• appoint fit-and-proper management with good repute, knowledge, and experience;
• have the management in the EU and at least one director residing in the EU;
• meet permanent minimum capital requirement;
• appropriate governance and organisational structures;
• develop internal controls suitable for the scale and complexity of the business.

Italy largely follows the MiCA framework for CASPs, but it has specific national requirements allocating supervisory functions between the two authorities.

What Are the Capital and AML/KYC Requirements for CASPs in Italy?

In Italy, CASPs must comply with strict AML/CFT and KYC requirements. They need to check and prove the identity of all clients, whether individuals or corporate clients. They gather comprehensive customer profiles, including legal names, residential or registered addresses, entity types, and authorised representative details. Suspicious operational or financial activities must be reported to the Italian Financial Intelligence Unit (UIF), which is part of Banca d’Italia.

Minimum own-funds requirements vary by CASP service class, with thresholds of EUR 50,000, EUR 125,000, and EUR 150,000 for Classes 1, 2, and 3, respectively.

How Does the CASP Licensing Process Work in Italy?

According to MiCA, the formal authorisation process takes at least 65 working days, provided that the regulator receives the complete application and no suspension or delay occurs. In practice, overall CASP licensing may take up to 18 months. The formal process is as follows:

• Consob reviews an application for completeness within 25 business days of receiving it, unless the process is paused. Consultations with the Bank of Italy are possible.
• If the application is incomplete, the regulator sets a deadline by which the entity must provide the required information. If the application is still incomplete, it may be rejected.
• Once the application is complete, the regulator confirms this and begins the substantive assessment. This process takes up to 40 working days. If additional information is required, the applicant must provide it within the prescribed timeframe.

The competent authorities refuse an authorisation, particularly if the applicant’s top management is compromised or AML/CFT risks arise.

What Are the Steps to Apply for a CASP License in Italy?

Obtaining a CASP license in Italy includes the following steps:

• establishing a legal entity in the EU;
• preparing the application package;
• submitting the application with supporting documents to CONSOB; 
• undergoing the regulatory assessment, including consultation with Banca d’Italia;
• receiving the regulator’s decision;
• if approved, getting the CASP authorisation.

If an application is refused, the applicant may submit a new application after addressing the grounds for refusal.

How Is a CASP Company Incorporated in Italy?

To set up an Italian legal entity, businesses choose an appropriate legal form and company name, appoint directors, prepare the incorporation documents, and submit a digital filing to simultaneously register the company with the Italian Business Register, the Revenue Agency (for the tax code and VAT number), INPS (social security), and INAIL (insurance).