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Guide for Virtual Asset Service Provider License

23 September 2025
|
17:17

The VASP license (Virtual Asset Service Provider license) is a regulatory authorization required for companies that deal with cryptocurrencies or digital assets.

It is based on the FATF (Financial Action Task Force) recommendations, which define VASPs as businesses or individuals that:

● exchange virtual assets for currencies or other virtual assets,

● provide custody or services,

● transfer or broker crypto transactions,

● operate trading platforms or desks.

In short, any company handling crypto on behalf of customers is expected to obtain a VASP license in order to operate legally. This license is recognized internationally and signals that the company complies with AML/KYC standards and anti-fraud regulations.

Why VASP licensing is crucial in 2025

The crypto market has moved beyond the “wild west” era. With billions of dollars flowing through blockchain networks daily, regulators worldwide demand compliance, transparency, and accountability.

Benefits of obtaining a VASP license

● Customer trust — licensed providers appear more reliable to retail and institutional investors.

● Banking access — opening corporate accounts and working with payment providers becomes easier.

● Global expansion — VASP licenses allow businesses to serve international clients without being accused of money laundering or unlicensed activity.

● Investment opportunities — investors prefer companies with clear regulatory standing.

Risks of operating without a license

● frozen bank accounts,

● fines and regulatory bans,

● reputational damage,

● limited access to payment gateways.

Global landscape of VASP regulation

The regulatory environment differs significantly by region:

Jurisdiction	Approach to VASP licensing	Key Notes
European Union	Transition to MiCA regulation, but VASP rules still apply until 2026	Unified EU market soon
Estonia	Strict VASP regime, popular since 2017	High AML standards
Lithuania	Attractive for startups, lower entry costs	Strong local banking ties
Malta	Crypto-friendly, but requires detailed compliance	Known as the “Blockchain Island”
Dubai (VARA)	Ambitious framework attracting global exchanges	Clear licensing for custodians
Singapore & Hong Kong	Advanced regulations focused on institutional trust	High barriers but good reputation
USA	No unified VASP license, fragmented by state	BitLicense in New York as example

Core requirements for a VASP license

While requirements differ across countries, most regulators expect:

1. Minimum share capital — varies from €50,000 to €350,000 depending on jurisdiction.

2. Local entity and office — physical presence required.

3. Qualified management — directors and shareholders must pass fit-and-proper tests.

4. AML/KYC procedures — risk assessment, onboarding checks, transaction monitoring.

5. Compliance officers — appointment of AML and reporting officers.

6. IT systems — tools for fraud detection, suspicious transaction reporting.

7. Regular audits — both financial and regulatory.

Step-by-step guide: how to apply for a VASP license

1. Choose the right jurisdiction — analyze costs, reputation, and regulatory climate.

2. Register a local company — often required before submitting the application.

3. Prepare documentation — business plan, AML policy, compliance manuals.

4. Hire local representatives — compliance officer, directors, accounting services.

5. Submit application to regulator — often online, sometimes via local law firms.

6. Regulator due diligence — background checks, interviews, system audits.

7. Approval and licensing — usually takes 3–6 months, depending on jurisdiction.

Advantages of holding a VASP license

● Stronger reputation — trust from users, banks, and partners.

● Operational security — no fear of sudden shutdowns or bans.

● Business growth — easier to expand into , , tokenization sectors.

● Exit value — licensed companies are valued higher in mergers or acquisitions.

Common mistakes and pitfalls

Many startups underestimate compliance requirements. Frequent mistakes include:

● Choosing a jurisdiction only for low fees, ignoring long-term reputation.

● Weak AML/KYC systems that fail during regulator audits.

● Appointing directors without financial or legal background.

● Missing deadlines for mandatory reporting.

A professional legal and compliance team is often the difference between success and rejection.

VASP license vs MiCA license

It’s important to understand how VASP licensing interacts with the EU’s new MiCA framework.

● VASP license — global standard derived from FATF, recognized worldwide, but applied differently in each country.

● MiCA license — specific to the European Union, allows one license to operate across all 27 EU states.

Which one to choose?

● If your focus is Europe, MiCA is the better long-term strategy.

● If you want global coverage, a VASP license in a crypto-friendly jurisdiction (like Estonia, Dubai, or Singapore) is recommended.

● Many companies combine both approaches: VASP outside EU + MiCA inside EU.

The Future of VASP regulation

Looking ahead to 2026 and beyond:

● Closer global coordination — FATF will push for more consistent adoption of VASP standards.

● Rise of AI-driven compliance — automated AML/KYC checks with blockchain analytics.

● Integration with CBDCs — central bank digital currencies may require VASPs to act as intermediaries.

● Pressure on DeFi — decentralized projects may need hybrid licensing solutions to survive.

Final thoughts

The VASP license has become one of the most important regulatory milestones for the crypto industry. In 2025, obtaining such a license is no longer a “nice-to-have” but a mandatory requirement for any serious crypto business.

Entrepreneurs who embrace compliance early will not only avoid risks, but also gain a competitive edge, attract institutional investors, and secure long-term growth in one of the fastest-changing industries in the world.

This publication is sponsored. Coindoo does not endorse or assume responsibility for the content, accuracy, quality, advertising, products, or any other materials on this page. Readers are encouraged to conduct their own research before engaging in any cryptocurrency-related actions. Coindoo will not be liable, directly or indirectly, for any damages or losses resulting from the use of or reliance on any content, goods, or services mentioned. Always do your own research.

Author

Krasimir Rusev

Reporter at Coindoo

Krasimir Rusev is a journalist with many years of experience in covering cryptocurrencies and financial markets. He specializes in analysis, news, and forecasts for digital assets, providing readers with in-depth and reliable information on the latest market trends. His expertise and professionalism make him a valuable source of information for investors, traders, and anyone who follows the dynamics of the crypto world.