Virtual asset service provider
VASPAlso called cryptoasset business, crypto exchange provider
A virtual asset service provider is a business that exchanges, transfers, holds or administers virtual assets, or provides financial services for their issue or sale, on behalf of customers. The term comes from the FATF standards, which require these firms to be licensed or registered and to apply the same AML controls as banks.
How it works
The FATF defines a VASP by activity, not by technology or label. Exchanging virtual assets for fiat or for other virtual assets, transferring them, safekeeping them and taking part in token issuance all count. Countries must license or register VASPs, supervise them for anti-money laundering and terrorist financing, and require customer due diligence, transaction monitoring, record keeping and suspicious activity reporting, with sender and recipient data passed on with transfers.
Each jurisdiction writes the FATF definition into its own law under its own label. The UK registers cryptoasset exchange providers and custodian wallet providers with the FCA under the Money Laundering Regulations. The EU authorises crypto-asset service providers under MiCA. In the US, FinCEN treats most VASPs as money services businesses that must register and run a Bank Secrecy Act programme. Firms that deal with a VASP check its licence or registration first.
The rules
Requires countries to license or register VASPs, supervise them for AML and apply the full set of preventive measures, including the travel rule.
Countries, which apply it to VASPs through national lawBrought cryptoasset businesses into the Money Laundering Regulations and requires them to register with the FCA before trading. A FSMA authorisation regime under SI 2026/102 replaces it from 25 October 2027.
Cryptoasset exchange providers and custodian wallet providersRequires firms providing crypto-asset services to be authorised as CASPs, the EU's licensed form of VASP, with AML duties set by EU AML law.
Crypto-asset service providers in the EUConfirms that businesses accepting and transmitting convertible virtual currency are money transmitters, required to register as money services businesses and meet Bank Secrecy Act duties.
Exchangers, administrators and other virtual currency businessesCommon questions
What is the difference between a VASP and a CASP?
VASP is the FATF term used in global standards and many national laws. CASP is the term in the EU's MiCA regulation for a firm authorised to provide crypto-asset services in the EU. A CASP is a VASP, but the CASP label and licence apply only under MiCA.
Are crypto wallets VASPs?
A custodial wallet provider that holds assets or private keys for customers is a VASP. Software that lets users hold their own keys, with no provider control over the assets, is not a VASP under the FATF definition.
Do banks need to check VASP customers?
Yes. A bank serving a VASP checks its licence or registration, its AML controls and its travel rule compliance, and treats the relationship according to its risk.
