VASP (virtual asset service provider)
A VASP (virtual asset service provider) is a business that provides crypto services: exchange, transfers or custody. FATF coined the term, and such firms must follow AML rules.
How it works
In 2018–2019 FATF defined a VASP as a business that, on behalf of others, exchanges crypto for fiat or other crypto, transfers it, holds or manages it, or takes part in token issuance. That covers centralised exchanges, exchangers, custodial wallets and many brokers.
VASP status brings duties: registration or a licence with the local regulator, KYC, transaction monitoring, the Travel Rule, and reporting suspicious activity. Under the EU's MiCA the equivalent term is CASP. Other countries use their own names and requirements.
For users, it is a check of whether a service operates legally in your country. A registered VASP does not guarantee your money is safe, but an unregistered service serving customers where registration is required is a serious red flag.
You compare two exchangers. The first lists its registration number in the national VASP register, and you can find it on the regulator's website. The second discloses neither a legal entity nor a registration and promises "no KYC for any amount". The second is far riskier: if your money disappears, there is nobody to turn to.
A mistake is trusting a "licensed" badge on a website without checking. Scammers write anything. Find the legal entity name and registration number, look them up in the regulator's register on its official site, and make sure the licence covers the service and country you need.
Questions and answers
What is a VASP in simple terms?
It is a company that handles other people's crypto: exchanging, transferring or holding it. Exchanges and custodial wallets are typical VASPs.
What is the difference between a VASP and a CASP?
They are close in meaning. VASP is the term used by FATF and many countries, CASP is the term in the EU's MiCA regulation.
Is a self-custody wallet app a VASP?
Usually not: if the software only lets you control your own keys and never controls your funds, it is generally not treated as a VASP. Rules can differ by country.
Related terms
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Updated: 2026-10-19