VASP Licensing Mandate

Definition ∞ A VASP licensing mandate refers to a legal requirement for Virtual Asset Service Providers (VASPs) to obtain an official license or registration from a regulatory authority before operating. This mandate ensures that crypto businesses comply with anti-money laundering (AML), counter-terrorist financing (CTF), and other financial regulations. It aims to bring digital asset firms under regulatory oversight, promoting market integrity and consumer protection. Compliance with such mandates is becoming a global standard for legitimate crypto operations.
Context ∞ Crypto news frequently discusses VASP licensing mandates as jurisdictions worldwide implement stricter regulations for digital asset businesses. These mandates often require firms to establish robust compliance programs, including KYC/AML procedures and transaction monitoring systems. The lack of consistent global standards for VASP licensing remains a challenge, leading to varying operational requirements across different countries.