Definition
A Virtual Asset Service Provider (VASP) is the Financial Action Task Force's umbrella term for any business that, as a commercial activity, exchanges, transfers, safeguards, or administers virtual assets on behalf of another person. The category was defined by FATF to make clear which crypto businesses fall inside the regulated perimeter and therefore inherit anti-money-laundering duties. If a firm acts as a custodial intermediary between users and their coins, it is almost certainly a VASP somewhere.
Who counts as a VASP
Typical VASPs include centralized cryptocurrency exchanges, custodial wallet providers, over-the-counter trading desks, and crypto-to-fiat brokers. Once classified as a VASP, a business must register or obtain a license with its national regulator, run KYC and customer due diligence, monitor transactions, screen against sanctions lists, and comply with the Travel Rule when moving assets for clients. In the EU, the equivalent licensed category under MiCA is the Crypto-Asset Service Provider (CASP).
The boundary with self-custody
The defining test is custody and control on behalf of others. A person running a node, a self-hosted wallet, or non-custodial software where users hold their own keys is generally not a VASP, because no third party controls the funds. This distinction is why decentralized, key-holding tools sit outside most of the regulated perimeter, a recurring theme in digital-sovereignty design.
This is educational content, not legal advice. For related terms, see FATF Travel Rule and MiCA (Markets in Crypto-Assets).
In Simple Terms
A Virtual Asset Service Provider (VASP) is the Financial Action Task Force’s umbrella term for any business that, as a commercial activity, exchanges, transfers, safeguards,…