A Virtual Asset Service Provider is defined by the Financial Action Task Force (FATF) as a business that conducts one or more of the following actions on behalf of its clients:
- exchange between virtual assets and fiat currencies
- exchange between one or more forms of virtual assets
- transfer of virtual assets
- safekeeping and/or administration or virtual assets or instruments enabling control over virtual assets
- participating in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset
This definition encompasses a range of crypto businesses, including exchanges, ATM operators, wallet custodians, and hedge funds. FATF further recommends that VASPs be subject to the same stringent AML/CTF and KYC requirements as traditional financial institutions.
See the full definition in Annex A of http://www.fatf-gafi.org/media/fatf/documents/recommendations/12-Month-Review-Revised-FATF-Standards-Virtual-Assets-VASPS.pdf