Denmark based CASP4.8/5CASP stands for "Crypto-Asset Service Provider" — the regulatory category MiCA created for firms that custody, exchange, transfer, advise on, or manage crypto-assets on behalf of clients. A CASP licence is issued by a national regulator (in Penning's case, the Danish FSA / Finanstilsynet) and is passportable across the EU. This page explains what a CASP licence actually grants, what it requires, and what it doesn't cover.
MiCA defines ten crypto-asset services. A CASP licence authorises a firm to offer a specific subset of these — each one has its own conduct rules, capital requirement, and ongoing prudential obligations. Penning is authorised for the services marked below.
Holding client crypto-assets in segregated wallets with the operational and legal separation MiCA requires. Includes the lifecycle obligations: tracking, reconciling, and producing position statements.
Running an order book or matching engine where clients can buy and sell crypto-assets at displayed prices. Penning operates a continuous trading platform under this authorisation.
Allowing clients to convert crypto-assets to fiat (EUR, DKK) and vice versa. This is the on-ramp / off-ramp service.
Crypto-to-crypto swaps — the foundation of services like Penning Native Swap.
Routing and filling client orders, with MiFID II-style best-execution obligations and post-trade transparency requirements.
Helping issuers distribute crypto-assets to investors at issuance — analogous to underwriting in traditional capital markets.
Receiving client orders and passing them to another venue for execution — the broker function.
Personalised investment recommendations to clients. Triggers MiFID-style suitability and conflict-of-interest rules.
Managing a client's crypto-asset portfolio on a discretionary basis under a written mandate — the basis for Penning Invest.
Moving crypto-assets between addresses or accounts on behalf of clients — settlement, withdrawal, and on-chain transfer services.
€50,000 for class-1 services (reception/transmission, execution, placement, advice, portfolio management, transfer), €125,000 for class-2 (custody, exchange), €150,000 for class-3 (trading platform operation). Penning meets the class-3 threshold.
Client crypto and fiat must be held in accounts that are operationally and legally segregated from the firm's own funds. Penning custodies client crypto with an EU-regulated custody partner (OKX) and client fiat in segregated Danish bank accounts.
EU-resident management body, conflicts-of-interest policy, complaints handling, business continuity plan, ICT risk-management framework under DORA, and a designated compliance and risk function.
Full alignment with the EU's anti-money-laundering framework, including the Travel Rule for crypto transfers above the €1,000 threshold and ongoing transaction monitoring.
Periodic reports to the home-state regulator on capital adequacy, large exposures, complaints, ICT incidents, and material outsourcing. Public disclosure obligations on a quarterly basis.
Penning operates under a CASP licence granted by the Danish FSA — passported across the EU.