Key advantages of a VASP license

Access to international markets

A VASP license allows you to operate outside a single jurisdiction. For example, in the EU, it can provide “passporting rights” — the ability to operate in all EU countries with a single license. This makes it easier to scale your business and attract a global audience.

Strengthening trust and reputation

Registration in a respected jurisdiction enhances your company’s credibility in the eyes of customers, investors, and partners. Financial institutions such as banks and insurance companies are more likely to cooperate with those who are officially licensed.

Minimizing legal risks

A VASP license requires a company to comply with strict AML/KYC/CTF procedures and implement transaction risk assessment practices. This reduces the likelihood of legal consequences, simplifies interaction with regulatory authorities, and helps build a sustainable business model.

Who needs a VASP license?

A VASP license is required for companies that provide financial services using virtual assets. However, this does not mean that licensing is necessary for all electronic financial services. For example, companies that offer digital wallets or consulting services without directly participating in the trading and exchange of cryptocurrencies can operate without obtaining this license.

In particular, a VASP license (also known as a crypto license) is required for the following activities:

• cryptocurrency exchanges — companies offering spot trading of cryptocurrencies, contracts for difference (CFD) transactions, and coin sales;

• cryptocurrency exchange services — platforms that allow cryptocurrencies to be exchanged for fiat money, such as euros or dollars, and vice versa;

• platforms for sending virtual assets — organizations engaged in the transfer of cryptocurrencies between users;

• cryptocurrency storage and management services — companies offering customers wallets and other solutions for the secure storage of digital assets;

• ICOs and the issuance of new tokens – companies that organize initial coin offerings to raise funds for the creation of new crypto assets;

• operators of over-the-counter (OTC) trading platforms;

• virtual asset management service providers;

• staking platforms.

These activities require a VASP license to ensure the security of operations and compliance with international anti-money laundering (AML) and counter-terrorist financing (CTF) standards. The license confirms that the company operates legally and complies with established rules to protect against financial abuse.

VASP license in Europe

In Europe, the regulation of activities related to virtual assets is rapidly developing under the influence of both national regulations and pan-European legislation.

In EU countries, a single MiCA (Markets in Crypto-Assets) regulation will come into force in 2025, introducing the concept of a CASP (Crypto-Asset Service Provider) license. Before MiCA, each EU country had its own national rules, but now the CASP license will become mandatory for all crypto companies operating in the EU and will replace the previously applied VASP model, which operated under national legislation and AML/CTF requirements. CASP creates a single legal regime and allows operations throughout the EU thanks to the passporting principle.

At the same time, several non-EU European countries continue to apply their own rules or maintain VASP-based licensing. Jurisdictions such as the UK, Switzerland, Norway, and Serbia apply either adapted forms of VASP licenses or introduce their unique regulatory approaches. In these countries, regulation is also aimed at combating money laundering, but does not fall under the pan-European MiCA regulation.

Regulatory requirements for companies to obtain a VASP license

Over the past few years, VASP regulation has gone beyond the fight against money laundering. Today, government agencies take a comprehensive approach to ensuring financial stability. To obtain a license, companies must comply with several regulatory requirements that ensure the transparency, security, and legality of transactions with virtual assets.

The main requirements can be divided into several categories:

Compliance with AML and KYC rules.

One of the main licensing requirements is the existence of anti-money laundering (AML) and know your customer (KYC) policies. Companies must develop comprehensive measures to verify customer identities, assess transaction risks, and monitor suspicious activity. Virtual asset service providers must also conduct a comprehensive enterprise-wide risk assessment that takes into account customer characteristics, products, channels, transactions, and geographic factors.

Financial stability.

The VASP license requires companies to comply with strict capital and liquidity requirements. This includes financial reporting that demonstrates the company’s accurate financial condition and maintaining sufficient capital and liquid assets to cover potential losses.

Qualified personnel.

The applicant is required to appoint a local compliance officer with experience in AML and financial regulation. In addition, Know Your Employee (KYE) checks and regular AML/CTF training for staff are required.

Risk management and cybersecurity.

Companies are required to implement cyber threat protection procedures and risk management systems to prevent fraud and market abuse. This helps protect client assets and ensure data security.

Organizational structure and business practices.

Organizational structures must be aligned to enable effective management of operations and internal controls. Important aspects include ethical practices, transparency in accounting, and separation of client assets from company assets.

Record keeping and reporting.

All audits, internal procedures, and correspondence with clients must be documented and retained for the periods specified by the regulatory authority. Regular reporting to financial and supervisory authorities is also mandatory.

These requirements are designed to ensure that companies obtaining a VASP license comply with international standards, maintain high ethical standards, and protect the interests of clients and the financial system as a whole.