FATF-VASP

FATF VASP regulated crypto entity AML/CFT.

Definition

FATF VASP definition 5 activities: (1) Exchange between Virtual Assets and Fiat Currencies, (2) Exchange between Virtual Assets (crypto-to-crypto), (3) Transfer of Virtual Assets (custodial wallet, sending), (4) Safekeeping and/or administration of Virtual Assets (custody), (5) Participation in and provision of Financial Services related to Issuer's Offer (ICO/STO underwriting). VASP obligations: National Registration / Licensing, KYC AML monitoring, Suspicious Activity Reports SARs Reporting, Travel Rule compliance, Sanctions screening (OFAC, EU Sanctions). Implementation jurisdictions: EU MiCA CASP (Crypto Asset Service Provider) classification, USA FinCEN MSB Money Services Business + state Money Transmitter License, UK FCA Money Laundering Regulations, Singapore MAS Payment Services Act 2019, Japan FSA crypto exchange license. Non-compliance penalties VASPs: multi-million USD/EUR fines (Binance $4.3B settlement 2023 USA largest).

Origin

FATF Recommendation 15 amended 2019 (June Plenary) VASP definition first introduced ; FATF Guidance 2019 ; updates 2021, 2023 ; ~60 jurisdictions implemented VASP framework.

Example in context

Coinbase Europe (Ireland) registered as VASP Central Bank of Ireland Authorisation since 2021 ; KYC all EU users, transactions AML monitoring, Travel Rule compliance, SAR reports to FIU Financial Intelligence Unit in case of suspect activity.

Related terms

• FATF Travel Rule — VASPs obligation.