> For the complete documentation index, see [llms.txt](https://www.mica.wtf/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://www.mica.wtf/eu-level/q-and-a/esma-qa-2293-proprietary-trading-casp.md). # Proprietary trading by CASPs | | | | --------------- | --------------------------------------------------------------------------------------------------------------------------------------------- | | **Authority** | ESMA | | **Q\&A ID** | ESMA\_QA\_2293 | | **Status** | Answer Published | | **Published** | June 2025 | | **Legal basis** | [Article 59](/mica/title-v-authorisation-and-operating-conditions-for-crypto-asset-service-providers-art.-59-85/chapter-1/article-59.md) MiCA | | **Source** | [ESMA Q\&A](https://www.esma.europa.eu/publications-data/questions-answers/2293) | ### Question Do firms dealing on own account with regards to crypto-assets require a CASP license? ### Answer Answer provided by the European Commission According to [Article 3(1)](/mica/title-i-subject-matter-scope-and-definitions-art.-1-3/article-3.md)(15) of MiCA, a legal person or other undertaking is defined as a CASP if its occupation or business is the provision of one or more [crypto-asset](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/crypto-asset.md) services to clients and if its acts on a professional basis. Dealing on own account is defined under Article 4(6) MiFID as trading against proprietary capital resulting in the conclusion of transactions in or more financial investments. Similarly, for crypto-assets, dealing on own account is the trading against capital resulting in the conclusion of transactions in one or more crypto-assets. Dealing on own account generally does not involve a [client](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/client.md) relationship as the service provider is not acting on behalf of its clients but its own name, e.g., proprietary trading on [crypto-asset](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/crypto-asset.md) trading platforms. In those cases, a CASP license is not required. In respect to proprietary trading on crypto-asset trading platforms, MiCA explicitly prohibits CASPs operating a trading platform from dealing on their own account on the same platform (Article 76(5)). However, in some cases, proprietary trading activities using proprietary capital may consist in the execution of crypto-assets services that involve a [client](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/client.md) relationship. This concerns in particular the services of [exchange of crypto-assets for funds](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/exchange-of-crypto-assets-for-funds.md) defined in [Article 3(19)](/mica/title-i-subject-matter-scope-and-definitions-art.-1-3/article-3.md) MiCA and the services of [exchange of crypto-assets for other crypto-assets](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/exchange-of-crypto-assets-for-other-crypto-assets.md) defined in [Article 3(20)](/mica/title-i-subject-matter-scope-and-definitions-art.-1-3/article-3.md) MiCA, which cover the conclusion of purchase or sale contracts concerning crypto-assets with clients for other crypto-assets or funds by using proprietary capital. Therefore firms engaging in these activities (crypto-asset exchange services) must obtain a CASP license. In this respect, recital 87 clarifies that “the exchange of crypto-assets for [funds](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/funds.md) or other crypto-assets when made by the [issuer](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/issuer.md) or [offeror](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/offeror.md) should not be a [crypto-asset service](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/crypto-asset-service.md)”. Also, if the firm is engaged in market making on a trading platform, no client relationship is implied and a CASP authorisation or notification is not applicable. Disclaimer: The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts. *** **Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/2293) ### Related * [exchange of crypto-assets for other crypto-assets](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/exchange-of-crypto-assets-for-other-crypto-assets.md) — defined term used on this page * [exchange of crypto-assets for funds](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/exchange-of-crypto-assets-for-funds.md) — defined term used on this page * [crypto-asset service](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/crypto-asset-service.md) — defined term used on this page * [crypto-asset](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/crypto-asset.md) — defined term used on this page * [crypto-asset](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/tofr/crypto-asset.md) — defined term used on this page * [offeror](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/offeror.md) — defined term used on this page * [client](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/client.md) — defined term used on this page * [issuer](https://github.com/jakesenfti/micawtf/blob/main/spaces/definitions/mica/issuer.md) — defined term used on this page --- # Agent Instructions This documentation is published with GitBook. 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