Virtual Asset Service Provider

Definition ∞ A Virtual Asset Service Provider (VASP) is an entity that conducts one or more of the following activities for or on behalf of another natural or legal person, including with virtual assets as a subject: exchange between virtual assets and fiat currencies; exchange between one or more virtual assets; facilitating the transfer of virtual assets; custody or administration of virtual assets; and participating in and providing financial services related to the issuance and sale of virtual assets. These entities are subject to regulatory oversight to mitigate risks associated with illicit finance.
Context ∞ The regulatory landscape for Virtual Asset Service Providers is continually evolving, with an increasing focus on global compliance standards for Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF). Discussions frequently revolve around the definition of VASPs, the application of existing financial regulations to digital assets, and the challenges of enforcing these rules across different jurisdictions.