VASP (Virtual Asset Service Provider)
A VASP, or Virtual Asset Service Provider, is FATF's regulatory term for any business that conducts activities like exchanging, transferring, safekeeping, or administering cryptocurrency on behalf of customers — exchanges, custodians, and many wallet providers all fall under this definition.
VASP (Virtual Asset Service Provider)
A VASP, or Virtual Asset Service Provider, is FATF's regulatory term for any business that conducts activities like exchanging, transferring, safekeeping, or administering cryptocurrency on behalf of customers — exchanges, custodians, and many wallet providers all fall under this definition.
What it means
The term matters because it is the trigger for a whole set of obligations under FATF's framework — KYC, AML programs, sanctions screening, and Travel Rule compliance all attach specifically to entities that meet the VASP definition, distinguishing them from individuals simply holding or transacting with their own crypto, who are not VASPs and are not subject to the same institutional requirements.
Whether a specific business counts as a VASP is not always obvious, particularly for newer models like some DeFi protocols or peer-to-peer platforms that may or may not exercise the kind of custodial control the definition contemplates — this classification question has been a recurring point of regulatory debate as the industry has evolved.
Real-world example
A centralized exchange, a custodial wallet provider, and an OTC desk all clearly meet the VASP definition and carry corresponding AML, KYC, and Travel Rule obligations in most jurisdictions that have adopted FATF's framework into national law.
Related terms
In FreezeRadar
FreezeRadar's enterprise offering is built for VASPs that need wallet-level risk screening as part of their broader AML and Travel Rule compliance obligations.
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By FreezeRadar Team
Research and product team behind FreezeRadar.
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