Question from BitcoinTalk: “What is a VASP and do I need to register as one?”
Short answer: VASP stands for Virtual Asset Service Provider. It’s the regulatory category for crypto exchanges, wallet providers, custodians, and other crypto businesses. Countries following FATF guidelines require VASPs to register, implement KYC/AML, and report transactions.
Who Is a VASP
Under FATF guidelines, a VASP includes any business that:
- Exchanges crypto for fiat currency
- Exchanges one crypto for another
- Transfers crypto on behalf of customers
- Safekeeps or administers crypto
- Provides crypto financial services
Countries Requiring VASP Registration
| Country | Status | Notes |
|---|---|---|
| Singapore | Registered | Strict licensing regime (MAS) |
| UAE (Dubai) | VARA licensed | Clear regulation for VASPs |
| UK | FCA registered | Many applications rejected |
| EU | CASP license (under MiCA) | Passportable across EU |
| US | Money transmitter licenses (state-level) | 50+ state regulators, complex |
| Australia | AUSTRAC registered | Relatively straightforward |
| India | FIU registered | Mandatory for exchanges |
| Japan | FSA licensed | Strict, early adopter |
What VASP Registration Involves
- Corporate registration — Legal entity in the country
- AML/KYC program — Written policies and procedures
- Travel Rule compliance — Share transaction info
- Capital requirements — €125K+ in the EU
- Reporting obligations — Suspicious transaction reports
- Audits — Regular audits of compliance
What This Means for Regular Users
If you’re an individual crypto user:
- You’re not a VASP — Individuals holding or transferring their own crypto don’t need registration
- Exchanges you use must be registered — Using unregistered VASPs may be risky
- You may be blocked — Many VASPs block users from non-cooperative jurisdictions
Verdict
VASP registration is for businesses, not individuals. It’s the regulatory framework that allows crypto businesses to operate legally. When choosing an exchange, check if it’s registered as a VASP in your jurisdiction.
Related: What Is KYC? | Crypto Travel Rule | How to Stay Compliant When Trading P2P