VASP (virtual asset service provider)
Also called: VASP · virtual asset service provider · CASP
Definition
A VASP (virtual asset service provider) is a business that exchanges, transfers, holds or manages crypto for customers and must follow anti-money laundering rules where it operates.
This entry is shown in English.
How VASP works
The term comes from the FATF and covers exchanges, custodial wallets, brokers, some payment services and firms that run token offerings. Many countries require VASPs to register or obtain a licence before serving local customers. In the EU, the MiCA regulation uses the term CASP, crypto-asset service provider, for licensed firms.
Being a registered or licensed VASP means the firm is subject to rules such as KYC, AML monitoring, the travel rule and, in some places, capital and custody requirements. It does not mean a regulator guarantees your funds. Registration in one country does not allow a firm to serve customers everywhere.
For users, checking VASP status is a practical safety step. Look up the firm on your national regulator's public register, check the exact legal entity name, and compare it with the entity in the exchange's terms of service. Global exchanges often run separate entities for different regions, each with its own permissions.
Example
Suppose an exchange advertises that it is licensed. You open its terms of service and find that your account is with an entity registered in Country A. You check the regulator register of your own country, Country B, and find no listing. A second, smaller exchange shows up on Country B's register under the same entity name as its terms. Of the 2 exchanges, only 1 is authorised to serve you locally under Country B's rules.
Common mistakes
- Trusting a licence logo on a website without checking the regulator's own register.
- Assuming a licence in one country covers users in every country.
- Believing registration means the regulator insures or guarantees customer funds.
Learn and practise
FAQ
Is a crypto exchange a VASP?
Yes, centralized exchanges that hold or exchange crypto for customers are VASPs under FATF definitions, and many countries require them to register or be licensed.
What is the difference between a VASP and a CASP?
VASP is the FATF's global term. CASP is the term used in the EU's MiCA regulation for licensed crypto-asset service providers.