Glossary > Virtual asset service providers ( VASPs )

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.

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