Reporting Crypto-Asset Service Provider (RCASP)
Web3 / regulatory frameworks
A Reporting Crypto-Asset Service Provider is any entity that handles customer crypto assets or transfers and falls under the Common Reporting Standard for Crypto-Assets ("Crypto-CARF") reporting obligations. RCASPs include cryptocurrency exchanges, custodians, brokers, dealers, wallet providers offering custodial services, staking platforms, and decentralized finance (DeFi) protocols that meet regulatory thresholds in certain jurisdictions. These entities must maintain detailed records of customer transactions and report relevant information to tax authorities. The designation emerged from OECD and FATF initiatives to extend traditional financial reporting standards into the digital asset ecosystem. Example: Major centralized exchanges like Coinbase, Kraken, and Gemini operate as RCASPs and are required to report customer transaction data, holdings, and transfers to the Internal Revenue Service (IRS) and international tax authorities under frameworks like the OECD's automatic exchange framework. Why it matters for crypto regulation: RCASPs serve as critical regulatory choke points, making crypto transactions visible to tax authorities and reducing opportunities for evasion. Compliance costs are substantial for platforms, ultimately affecting fee structures and service availability for users.
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