As the crypto industry becomes more regulated, you’ll come across the term VASP — especially when dealing with licensed platforms. But what exactly does it mean, and why does it matter for your crypto experience?
In this article, we explain what a VASP is, how it’s defined legally, and what it means for users and companies in the digital asset space.
What does VASP stand for?
VASP stands for Virtual Asset Service Provider. It’s a term used by regulators and lawmakers to define companies that offer crypto-related financial services.
The term was introduced by the Financial Action Task Force (FATF) and is now widely used in legislation across the EU and other regions.
What does a VASP do?
A company is typically classified as a VASP if it offers one or more of the following:
- Buying or selling cryptocurrencies (fiat on/off ramps)
- Transferring virtual assets between users
- Operating a crypto exchange
- Offering custody or wallet services
- Participating in ICOs or token issuance
These services fall under regulatory supervision and often require licensing or registration with financial authorities.
Why does VASP status matter?
- Trust & compliance: Licensed VASPs are subject to anti-money laundering (AML) and Know Your Customer (KYC) laws
- User protection: Regulatory oversight ensures better security, transparency, and dispute resolution
- Access to banking & payment rails: Many traditional institutions only work with registered VASPs
Floin Insight
Floin is a registered and regulated VASP under the Financial Market Authority (FMA) in Liechtenstein. This ensures full compliance with EU standards, AML regulations, and customer protection rules — while delivering a seamless and secure crypto experience.
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