What is a VASP under FATF?

A Virtual Asset Service Provider (VASP) is any natural or legal person that conducts exchange between virtual assets and fiat currencies, exchange between different forms of virtual assets, transfer of virtual assets, safekeeping/administration of virtual assets, or participation in financial services related to virtual asset offerings.

VASP compliance obligations

Under FATF Recommendation 15, VASPs must implement the same AML/CFT controls as traditional financial institutions: customer due diligence, suspicious transaction reporting, record-keeping, and — critically — sanctions screening. This means every VASP, from a major exchange to a DeFi front-end, has sanctions screening obligations.