What Is a VASP?

VASP explained - the FATF definition and its compliance meaning.

TL;DR

TL;DR: A VASP (Virtual Asset Service Provider) is any business that exchanges, transfers, or custodies virtual assets - the FATF definition. The label decides which AML/CFT obligations apply.

The definition

FATF: exchanges between virtual and fiat, exchanges between virtual assets, transfers, and safekeeping/administration of virtual assets.

What VASPs must do

KYC, travel rule (VASP-to-VASP data sharing), sanctions screening, and reporting. Exchanges and custodians are VASPs; pure software providers are not.

The agent angle

An agent that moves virtual assets may itself be VASP activity - the obligations follow the activity, not the label.