Digital Assets Services Provider (DASP) License

DASP is a jurisdictional label, not a separate species of regulation. El Salvador uses it under its Digital Assets Issuance Law (LEAD Law). France used it historically under the PSAN framework before MiCA replaced it in December 2024. Brazil’s framework operates as the local VASP equivalent under the Central Bank of Brazil, aligned with FATF standards.

The substance is comparable everywhere: custody, exchange, platform operation, and related services under AML supervision. What differs is procedure, cost, and reach.

A CASP authorization under MiCA passports across 27 EU member states. A DASP registration in El Salvador does not, but it costs a fraction of a European file and completes in weeks. Founders pick the label that matches their target market, then meet that regime’s exact requirements.

Registration triggers on activity, not on what the company calls itself. The four core triggers in most DASP jurisdictions are custody or administration of digital assets for clients, buying and selling digital assets against legal tender (fiat on- and off-ramping), crypto-to-crypto exchange, and operating a trading platform where third parties transact.

Some regimes extend the list to portfolio management, placement with or without guarantee, and investment advice. Foreign companies actively marketing to a DASP jurisdiction’s residents fall in scope too, as do cross-industry models such as GameFi and tokenized securities, which can trigger gambling or investment licensing alongside the DASP. Confirm the full activity list per market before operating, since adding a regulated activity after registration usually needs a separate notification.

El Salvador is the priority DASP jurisdiction: a documented process, capped timelines, low cost, and tax exemptions under Article 36 of the LEAD Law for registered DASPs on digital-asset income. The supervisor is the CNAD, which publishes a public list of registered providers.

The route runs in three phases. Pre-registration consultation comes first: the CNAD reviews the business model before a formal file exists, and gaps found here are cheaper to fix than gaps found under the clock.

The formal application follows, with a programme of operations covering fund flows, custody arrangements, and regulatory mapping, plus constitutional documents, shareholder and UBO records, a cybersecurity self-assessment, background files for directors and owners, an AML and counter-terrorist financing policy, and evidence of financial resources.

The CNAD then evaluates for a maximum of 20 business days and issues a favorable or unfavorable resolution, notifying the Financial Intelligence Unit (UIF) on grant. On a favorable resolution, the one-time registration fee of USD 5,475 is due within 10 business days, and missing that window risks forfeiting the resolution. See the El Salvador crypto license page for the broader country route.

Requirements share a common spine across jurisdictions. Individuals matter as much as the entity: executives, senior managers, and significant beneficial owners must show good repute and professional competence, and criminal records involving fraud or money laundering typically disqualify controlling persons regardless of title or shareholding.

The AML program must be operational, not paper: customer due diligence, transaction monitoring, sanctions screening, suspicious-activity reporting, and a compliance officer with real authority. Depending on activity class, the file may also need professional indemnity insurance, minimum own funds, and proof of human and technical resources, including systems that can actually support monitoring duties.

The process itself is consistent: scope assessment covering current and 12-month planned activities, pre-registration engagement where offered, formal submission, AML demonstration, fit and proper checks, financial and organizational proof, evaluation, then fee payment and grant. A material change mid-evaluation can reset the clock, and applications with known deficiencies burn regulatory goodwill.

Registration starts the supervisory relationship. The AML program must run as daily operations: ongoing sanctions screening, counterparty risk assessments, and reporting to the financial intelligence unit.

El Salvador’s CNAD monitors registrants and publishes delistings, with grounds including breach of registration conditions, irregular grant, and loss of genuine business substance. DASP compliance is therefore a standing cost center, usually paired with a compliance program that covers reporting calendars, staff training, and audit readiness. Founders comparing jurisdictions should price 12 months of total compliance, not just the filing fee, since professional, administrative, and monitoring costs typically exceed the regulator’s invoice.

El Salvador is the most cost-accessible live route: a one-time USD 5,475 registration fee with no comparable annual licensing levy, against a low overall compliance cost base.

France’s PSAN costs are historical now that MiCA governs EU access, with former registrants transitioned or CASP-licensed. Brazil’s VASP path prices against its market scale, with domestic establishment, capital, and FATF-aligned AML programs. European CASP files cost multiples of any DASP route in exchange for EU passporting. The CASP license and MiCA license guides carry the EU figures, and the VASP license guide covers FATF-aligned alternatives such as the Cayman Islands, the UAE, and Georgia.

LegalBison confirms the correct regime for the business model, picks the jurisdiction against target market and timeline, forms the entity through company registration, drafts the programme of operations and governance pack, runs the CNAD or equivalent filing, and sets up post-registration compliance. Its legal services cover the corporate and regulatory work.

Regulators decide outcomes, and LegalBison guarantees no approvals. To discuss a DASP project, contact LegalBison for a free consultation.