Virtual asset service providers ( VASPs )

Virtual asset service providers or VASPs is a broad term that refers to companies providing services related to cryptocurrencies.

But what is virtual assets or VAs ?

Virtual assets are digital representations of value that can be traded or transferred digitally and used for payment or investment purposes. Virtual assets do not include digital representations of fiat currencies, securities or other financial assets that have been identified elsewhere in the FATF guidelines.

The definition of Virtual asset service providers ( VASPs )

According to the FATF's definition, a VASP is a business that conducts one or more of the following activities:

• exchange between virtual assets (VAs) and fiat currencies;
• exchange between one or more forms of virtual assets (VAs);
• transfer of virtual assets (VAs);
• safekeeping and/or administration of VAs or instruments enabling control over VAs; and
• Participating in and providing financial services in connection with the offer or sale of virtual assets by the issuer.

More simply put, exchanges, peer-to-peer (P2P) exchanges, crypto ATMs, custodians, or OTC desks are VASPs for example.

Discover more about blockchain crypto and compliance with our Glossary.

About Scorechain

Scorechain is a Risk-AML software provider for cryptocurrencies and digital assets. As a leader in crypto compliance, the Luxembourgish company has helped over 200 customers in 40 countries since 2015, ranging from cryptocurrency businesses to financial institutions with crypto trading, custody branch, digital assets, customers onboarding, audit and law firms, and some LEAs.

Scorechain solution supports Bitcoin analytics with Lightning Network detection, Ethereum analytics with all ERC20 tokens and stablecoins, Litecoin, Bitcoin Cash, Dash, XRP Ledger, Tezos, and Tron with TRC10 and TRC20 tokens. The software can de-anonymize the Blockchain data and connect with sanction lists to provide risk scoring on digital assets, transactions, addresses, and entities. The risk assessment methodology applied by Scorechain has been verified and can be fully customizable to fit all jurisdictions. 300+ risk-AML scenarios are provided to its customers with a wide range of risk indicators so businesses under the scope of the crypto regulation can report suspicious activity to authorities with enhanced due diligence.