A virtual asset service provider (VASP) is a business that provides services related to virtual assets, such as buying, selling, storing, or exchanging virtual assets. Virtual assets are digital assets that are stored on a distributed ledger or blockchain, and they can include cryptocurrencies, security tokens, and other types of digital assets.
VASPs may be considered money service businesses (MSBs) depending on the specific activities they engage in and the jurisdictions in which they operate. In general, an MSB is a business that provides financial services, such as currency exchange, money transmission, or the issuance of prepaid access products. Some VASPs may be classified as MSBs because they provide these types of financial services in relation to virtual assets.
VASPs may be required to obtain a license or registration in order to operate, depending on the laws and regulations of the jurisdiction in which they are located. In some cases, VASPs may be subject to anti-money laundering (AML) and counter-terrorist financing (CTF) regulations, as well as other financial regulations.
VASPs are generally allowed to provide services related to virtual assets, such as buying, selling, storing, or exchanging virtual assets. However, they may be restricted from certain activities, such as providing unlicensed financial services or facilitating illegal transactions.
VASPs typically have a variety of clients, including individuals and businesses that use virtual assets for investment, speculation, or as a means of exchange. Some VASPs may also offer services to merchants, enabling them to accept virtual assets as a form of payment.
This page was last updated on January 6, 2023.