VASP registration explained
As of June 2026 a virtual asset service provider is a business that exchanges, transfers, or holds crypto as a service. The Financial Action Task Force defines the term, and almost every country requires these businesses to register or be licensed, apply identity checks, and answer to a supervisor. The detailed rules are set by national law, not by a single global registry.
VASP registration is the reason a regulated exchange asks for your identity, sets limits, and applies extra checks on larger transfers.
Quick answer
A virtual asset service provider, often shortened to VASP, is a business that exchanges crypto for money or other crypto, transfers crypto, provides custody, or takes part in financial services around issuing or selling crypto. The Financial Action Task Force created this definition, and as of June 2026 most countries require such businesses to register or hold a licence before they can serve customers. Registration brings duties: identify and verify customers, monitor transactions, report suspicious activity, apply the travel rule to transfers, and submit to supervision. The standard is set globally, but each country writes its own version into national law, so the precise process and the regulator differ from one place to the next. For users, registration is the practical reason regulated platforms apply identity checks and clear limits.
What counts as a VASP
The definition is deliberately broad. As of June 2026 the Financial Action Task Force treats a business as a virtual asset service provider when, as a service for or on behalf of others, it exchanges between crypto and traditional money, exchanges between different crypto assets, transfers crypto, holds crypto in custody or controls the means to do so, or takes part in financial services connected to the issuance or sale of a crypto asset. Centralised exchanges, custodians, certain brokers, and some wallet providers fall inside this scope. The breadth is intentional, because it determines which firms must register and comply. Whether a particular activity, such as a fully decentralised arrangement with no controlling party, falls inside the definition can be contested, and national authorities decide that question under their own law.
What registration requires of a provider
Registration is not a formality. As of June 2026 a registered or licensed provider typically must verify the identity of its customers before serving them, keep records, monitor activity for signs of money laundering or terrorist financing, report suspicious transactions to a national financial intelligence unit, and apply the travel rule by sending sender and recipient information with transfers above a set threshold. Many regimes also require fit and proper checks on owners and managers, governance and risk controls, and ongoing reporting to the supervisor. The supervisor can inspect a firm, demand changes, and in serious cases withdraw the registration. These duties are why a regulated platform looks and behaves much like a regulated financial business.
How the major jurisdictions apply it
The same standard takes different legal shapes. As of June 2026 the European Union folds the duties into authorisation under the Markets in Crypto Assets regulation and applies the travel rule through its transfer of funds rules. The United States requires exchanges to register with the Financial Crimes Enforcement Network as money services businesses, alongside state level money transmitter licensing, with the travel rule applied through a recordkeeping rule. The United Kingdom requires registration with the Financial Conduct Authority under its money laundering regulations, with a broader conduct regime made in 2026 and due to take effect in 2027. Singapore, Japan, and Hong Kong each license or register providers through their own authorities. The duties rhyme; the paperwork and the regulator differ.
How widely registration has spread
Adoption has grown steadily but unevenly. As of June 2026 the Financial Action Task Force, in its targeted update published in June 2025, reported that most assessed jurisdictions had passed or were passing legislation to bring virtual asset service providers within their anti money laundering regimes, and that the number of jurisdictions actually licensing or registering providers had risen year on year. It also flagged persistent gaps, including jurisdictions still building their supervisory capacity and risks from providers operating offshore outside well supervised regimes. The direction of travel is toward broader registration, but coverage and the quality of supervision still vary, which is part of why availability and rules differ so much by country.
What it means for users
For users, registration explains a lot of everyday friction and offers a measure of protection. As of June 2026 it is why a regulated platform asks for identity documents at sign up, why checks tighten on larger transfers, and why a platform may decline to serve a country it cannot serve compliantly. Using a registered or licensed provider generally means a firm that a supervisor can inspect and hold to account, which is a meaningful difference from an unregistered platform. Registration is not a guarantee of safety and does not remove market risk, but it is a useful signal. Checking whether a platform is registered with the relevant authority, and whether it is permitted to serve your country, is a sensible step before opening an account.
| Jurisdiction | How registration is applied (as of June 2026) | Authority |
|---|---|---|
| European Union | Authorisation under MiCA plus the transfer of funds rules | National authorities and ESMA |
| United States | Money services business registration plus state licensing | FinCEN and state regulators |
| United Kingdom | Money laundering registration, conduct regime due 2027 | Financial Conduct Authority |
| Singapore | Licensing under the Payment Services Act and provider rules | Monetary Authority of Singapore |
| Japan | Exchange registration under the Payment Services Act | Financial Services Agency |
Regulator and sources
The definition comes from the Financial Action Task Force and the national rules from each named authority. The descriptions draw on the Financial Action Task Force standards and its June 2025 targeted update, and on the official frameworks of the European Union, the United States, the United Kingdom, Singapore, and Japan, reviewed as of June 2026.
- Financial Action Task Force, Recommendation 15 and the virtual asset service provider definition (fatf-gafi.org)
- Financial Action Task Force, Targeted Update on Implementation of the FATF Standards on Virtual Assets and VASPs, June 2025
- European Securities and Markets Authority, Markets in Crypto Assets regulation pages
- Financial Crimes Enforcement Network, money services business registration guidance
- Financial Conduct Authority, cryptoasset registration and the new regime pages
Check which registered platforms are available where you live
Registered providers apply the checks described above as part of normal compliance. Availability depends on your country, so use the country pages to confirm which platforms are genuinely available to you before signing up.
Subscribe to The Compliance Ledger
One short email when a rule changes that affects where you live or trade. Information, never advice.
Frequently asked questions
What is a VASP?
A virtual asset service provider is a business that, as a service, exchanges crypto for money or other crypto, transfers crypto, provides custody, or takes part in financial services around issuing or selling crypto. As of June 2026 this Financial Action Task Force definition is the basis for most national registration regimes.
What does VASP registration require?
As of June 2026 a registered or licensed provider must identify and verify its customers, monitor transactions, report suspicious activity, apply the travel rule to transfers, and answer to a supervisor. The exact obligations are set by national law built on the Financial Action Task Force standards.
Is VASP registration the same everywhere?
No. The Financial Action Task Force sets the standard, but each country writes its own rules. As of June 2026 the European Union applies it through MiCA and the transfer of funds rules, the United States through FinCEN money services business registration, and the United Kingdom through its money laundering regulations.
How many countries register VASPs?
As of June 2026 a large and growing number do. The Financial Action Task Force reported in its June 2025 targeted update that most assessed jurisdictions had passed or were passing the relevant legislation, though implementation and supervision still varied widely.
Why does VASP registration matter to me as a user?
Registration is why a regulated platform asks for identity documents, applies limits, and may decline service in places it cannot serve compliantly. As of June 2026 using a registered provider generally means stronger supervision and clearer rules than using an unregistered one.
Is this legal advice?
No. This is general information, not legal, tax, or financial advice. Registration rules differ by country and change often, so confirm the current position with the relevant regulator and a qualified professional before acting.