Virtual asset service provider (VASP)
A virtual asset service provider (VASP) is a business that conducts virtual-asset activities for customers — exchanging between virtual assets and fiat, transferring virtual assets, or safekeeping them. The term comes from the Financial Action Task Force (FATF), whose standards require countries to license or register VASPs and hold them to full AML obligations, including the Travel Rule.
By Krisan Nichani, Chief Compliance OfficerLast updated July 2026
The label maps differently by jurisdiction: the US regulates the same activities largely as money services businesses under FinCEN, while the EU uses "crypto-asset service provider" (CASP) under MiCA. Wherever a business operates, the classification decides its licensing path and its obligations — AML program, Travel Rule data exchange, sanctions screening.
Like the money-transmitter question, whether a platform’s own funds flow makes it a VASP turns on who holds and controls the assets — a question for counsel. Infinite’s model uses bank-owned wallets and per-customer accounts, with screening and monitoring run on the network, so platforms can offer stablecoin payments without taking custody themselves.
Frequently asked questions
What are examples of VASPs?
Centralized cryptocurrency exchanges such as Coinbase or Kraken are the clearest examples — they exchange between virtual assets and fiat for customers. Custodial wallet providers, virtual-asset custodians, and businesses that transfer virtual assets on behalf of others also qualify. The test is the activity, not the label.
Is a VASP the same as an MSB?
They overlap but come from different regimes: VASP is FATF’s international term, while the US regulates the same activities largely as money services businesses under FinCEN. The EU uses "CASP" under MiCA. Money services business (MSB)
Do VASPs have to follow the Travel Rule?
Yes. FATF Recommendation 16 extends the Travel Rule to virtual-asset transfers, so VASPs must exchange originator and beneficiary information alongside transfers — through separate messaging protocols, not on-chain. Travel Rule
See how it works on the network.
Book a 30-minute demo and see how Infinite moves money — instant, compliant, and global.