What Is VASP Licensing? Who Needs a Crypto License in 2026

VASP licensing is one of the first steps a crypto business must take before accepting customers. However, its requirements and even terminology vary significantly between countries.

While there is no single global “VASP license,” VASP is a Financial Action Task Force classification used by governments to implement their own regulatory systems. The EU now typically uses “crypto-asset service provider,” or CASP. The US focuses on money-transmitter rules, and Dubai still explicitly issues VASP licenses.

Related: MPC Wallet: Is Crypto Finally Moving Beyond Seed Phrases?

What Is VASP Licensing?

In general, VASP licensing is a type of regulatory authorization for businesses that provide virtual asset services.

The Financial Action Task Force defines Virtual Asset Service Providers as businesses that engage in one or more of these activities:

• Exchange of crypto and fiat
• Exchange of one virtual asset for another
• Transfer of virtual assets
• Safeguarding or administering virtual assets
• Providing certain financial services related to the issuance or sale of virtual assets

The FATF recommends that countries regulate VASPs for anti-money-laundering and counter-terrorist-financing purposes.

However, the FATF does not issue licenses. Instead, national regulators are responsible for identifying companies needing authorization and naming it. This is why the VASP licensing can mean obtaining a MiCA CASP authorization in the EU, VARA VASP license in Dubai, or SFC virtual-asset license in Hong Kong.