What Is a Virtual Assets Service Provider (VASP)?

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:

  1. Allows exchange between virtual assets and fiat currencies
  2. Enables exchange between one or more forms of virtual assets
  3. Facilitates transfer of virtual assets
  4. Safekeeps and/or administers virtual assets or instruments enabling control over virtual assets
  5. 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.


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