What is a Virtual Asset Service Provider (VASP)?

What is a Virtual Asset Service Provider (VASP)?

A Virtual Asset Service Provider (VASP) is a business or person that helps people use, trade, or store digital assets like cryptocurrencies (Bitcoin, Ethereum, etc.).

In simple words, if you think of digital assets as money that only exists online, then VASPs are the companies that act like banks, exchanges, or wallets for that money.

Examples of VASPs include:

• Crypto exchanges (like Binance and Coinbase) where you can buy or sell crypto.
• Wallet providers that keep your digital coins safe.
• Businesses that transfer crypto between people.

Governments and regulators created the term “VASP” to set rules for these companies—mainly to prevent things like money laundering or terrorism financing.

👉 So, a VASP is basically any service that helps people move, trade, or store virtual assets in a professional way.