Definition ∞ VASP definition clarity concerns the precise legal and regulatory specification of what constitutes a Virtual Asset Service Provider. This clarity is crucial for jurisdictions to effectively apply anti-money laundering (AML) and counter-terrorist financing (CTF) regulations to businesses operating with digital assets. An ambiguous VASP definition can lead to regulatory arbitrage, uneven enforcement, and uncertainty for legitimate businesses, potentially hindering compliance efforts. It seeks to delineate which entities performing services related to virtual assets fall under regulatory scope.
Context ∞ VASP definition clarity is a central and ongoing debate in international financial regulatory news, particularly within bodies like the Financial Action Task Force (FATF). The current challenge involves crafting definitions that are technologically neutral and adaptable to the rapid pace of innovation in the digital asset sector. Future regulatory efforts will focus on achieving global consensus on VASP classifications to ensure consistent application of standards and to prevent regulatory gaps that criminals might exploit.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
