VASP

A Virtual Asset Service Provider (VASP) 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

Read our blog for a deeper dive into what is and isn’t a VASP: https://ciphertrace.com/what-exactly-is-a-virtual-asset-service-provider-vasp/ and
https://ciphertrace.com/what-are-virtual-assets-and-virtual-asset-service-providers-and-why-do-we-need-to-know-about-the-financial-action-task-force/

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