Crypto Service Permissions: What Each Covers

Permission	Covers	Matters when
Custody and administration of crypto assets	Holding assets on behalf of clients	A provider holds any balance for you
Operation of a trading platform	Running a venue matching orders	You trade on their book
Exchange of crypto assets for funds	Buying and selling against fiat	You convert to or from ordinary money
Exchange of crypto for other crypto	Converting between assets	You swap
Execution of orders on behalf of clients	Trading as your agent	They execute for you
Reception and transmission of orders	Routing your orders elsewhere	They pass orders to a venue
Transfer services	Moving assets on your behalf	They send on your instruction
Placing of crypto assets	Distribution	Rarely relevant to a user
Advice	Recommendations	They advise
Portfolio management	Discretionary management	They manage

The one that matters most

Custody and administration.

If a provider holds a balance for you without it, your assets are not protected by the client asset segregation rules you would otherwise rely on. These terms are used as defined here by providers operating inside the framework, such as a platform operating under a MiCA-compliant framework.

This is the most common gap. A provider authorised to exchange is genuinely authorised, and not for holding.

Adjacent permissions

Client money terminology differs again, and a provider serving funds and family offices publishes the relevant definitions.

Permission	Covers	Relevant to
Payment institution	Executing payment transactions, holding funds for that purpose	Fiat held by a payment provider
Electronic money institution	Issuing e-money and holding balances	Card products, stored balances

Both carry safeguarding obligations over relevant funds, distinct from crypto client asset segregation.

Verification procedure

1. Obtain the authority name and registration number in writing
2. Search that authority’s own public register
3. Confirm the entity name matches the contracting party in the terms of service
4. Read the list of permitted activities
5. Check for conditions, restrictions and enforcement history

Five minutes.

The group structure question

One term worth establishing before it matters is whether a crypto exchange with published fees exists as a reachable contact.

Which legal entity will I contract with, and does that entity hold the authorisation.

Ask in writing. Protections attach to the authorised entity, not to the brand.