The Financial Action Task Force (FATF), global money laundering and terrorist financing watchdog, defines a VASP as any entity that conducts one or more of the following activities:
- Allows exchange between virtual assets and fiat currencies
- Enables exchange between one or more forms of virtual assets
- Facilitates transfer of virtual assets
- Safekeeps and/or administers virtual assets or instruments enabling control over virtual assets
- Participates in and provides financial services related to the sale of virtual assets
All VASPs are required to stringently fulfill anti-money laundering and KYC requirements by the FATF and national regulators. Moreover, VASPs must report any suspicious activity on their platform to regulators.
