Crypto Asset Service Provider (CASP)

Crypto asset service providers (CASP) are entities that offer various services related to cryptocurrencies or digital assets. These services can include custody, exchange, trading, wallet management, asset management, and other related services. CASPs are often regulated by financial authorities and may be required to comply with anti-money laundering (AML) and know your customer (KYC) regulations.

The term “crypto asset service provider” is commonly used in the context of financial regulations and legislation related to cryptocurrencies. For example, the Financial Action Task Force (FATF), an intergovernmental organization that develops policies to combat money laundering and terrorist financing, has issued guidance on regulating CASPs. The FATF recommends that CASPs be regulated and licensed, and comply with AML and KYC regulations.

Virtual asset service providers (VASPs) are similar to CASPs in that they provide services related to digital assets. However, the term “virtual asset” is broader than “crypto asset,” as it encompasses any form of digital representation of value that can be traded or transferred. This includes digital tokens that represent securities, commodities, or other assets, as well as cryptocurrencies.

Therefore, CASPs primarily deal with services related to cryptocurrencies or crypto assets, whereas VASPs cover a broader range of digital assets. However, the two terms are often used interchangeably in some contexts, and the specific services provided by CASPs and VASPs may overlap.

This page was last updated on June 29, 2023.

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