What is a virtual asset service provider (VASP)?

These digital asset entities can be referred to as Virtual Asset Service Providers (VASPs) or money transmitters engaged in convertible virtual currency, depending on the regulatory or policy making body.

What activities qualify as Virtual Asset Services?

Activities that qualify as virtual asset services, as outlined by the FATF, include: Holding and/or administration of virtual assets or instruments that enable control over virtual assets Participating in and providing financial services related to an issuer's offer and/or sale of a virtual asset

What is a virtual asset?

As outlined by the Financial Action Task Force (FATF) , a virtual asset fits the following criteria: • It’s a digital store or representation of value. • It can be digitally traded or transacted, or used for payment or investment. • It doesn’t include a digital representation of or securities.

What are FATF standards for virtual asset financial services (VASPs)?

The FATF standards require countries to assess and mitigate their risks associated with virtual asset financial activities and providers; license or register providers and subject them to supervision or monitoring by competent national authorities. VASPs are subject to the same relevant FATF measures that apply to financial institutions.