Countries Clamp Down on Crypto with Strict VASP Regulations

Virtual Asset Service Providers (VASPs) are businesses that provide virtual asset services. The Financial Action Task Force defines VASPs as companies that engage in one or more of these activities: exchange of crypto and fiat, exchange of one virtual asset for another, transfer of virtual assets, safeguarding or administering virtual assets, and providing certain financial services related to the issuance or sale of virtual assets.

The FATF recommends that countries regulate VASPs for anti-money-laundering and counter-terrorist-financing purposes. However, national regulators are responsible for identifying companies needing authorization and naming it.

Businesses that fall within VASP licensing requirements usually include crypto exchanges, brokers and dealers, custodians, transfer and payment providers, certain lending and investment platforms, and some token and issuance businesses.