VASP License Explained: What It Is and How to Get One

The crypto space has evolved beyond its "wild west" reputation. Global regulators of today desire organisation, responsibility, and investor protection. In steps the VASP license. Not just a piece of paper, but your passport to building a reputable, bankable, and globally competitive crypto business.

Key Takeaways

• A VASP license is required for cryptocurrency companies dealing with client money.
• Requirements focus on AML/KYC, strong governance, and financial stability.
• The licensing process becomes easier through B2BROKER's customised consulting and compliance services.

What Is a VASP License?

A VASP license, or Virtual Asset Service Provider license, is a governmental permission granting a company the right to legally engage in services related to cryptocurrencies and other virtual assets. 

The licensing system was initiated by the regulators to inject greater discipline and confidence into the crypto space, which has long been attacked as an unregulated and risky venture. 

A company aims to trade, store, or transfer crypto assets on behalf of its customers. In that case, it typically requires a VASP license as evidence of the lawfulness of its business operations.

Operating under a VASP license is far more than a legal obligation — it's also an imprimatur of legitimacy. For customers and investors, operating from a licensed provider minimises fears of fraud, money laundering, or theft of funds. 

For the company itself, the license brings access to new markets, partnerships, and banking arrangements unavailable otherwise. In most territories, the regulator will even refuse permission to operate an exchange, wallet business, or brokerage if licensing evidence cannot be produced.

Each country has its own set of rules. Still, the majority of VASP frameworks converge upon the same pillars: rigorous AML (Anti-Money Laundering) and KYC (Know Your Customer) processes, transparency of operations, and effective financial reporting.

Who Needs a VASP License?

A VASP (Virtual Asset Service Provider) license becomes necessary whenever a business is dealing with client crypto in a manner involving custody, transfer, exchange, or brokerage. These actions are considered by the regulators to be sensitive because they imply risk to the clients and the overall financial system.

The following are the most common business entities subject to VASP regulation, and an explanation of why they are subject to the regulation:

Centralised Exchanges (CEXs)

Any platform where customers can swap fiat for crypto or crypto for crypto is facilitating exchange and dealing directly with client funds. Because these businesses often hold user balances temporarily, they are viewed as custodians as well as trading venues. Without a VASP license, operating a centralised exchange is illegal in most regulated jurisdictions.

Brokerages & OTC Desks

Companies that facilitate block trades, find liquidity providers for customers, or purchase and sell on behalf of customers are providing financial intermediation. Though they might not maintain a public order book, they are nevertheless trading and moving assets and thus fall squarely into the VASP definition.

Custodial Wallets & Custody Providers

If your firm has private keys, maintains money kept on behalf of customers, or has technology capability to transfer assets (even under strict internal controls), your regulator will regard you as a custodian of client funds. In such an event, licensing requirements are applicable, just like if a bank retains deposits.

Crypto Payment Processors & Gateways

Merchants look to these entities to receive crypto payments from clients and facilitate their exchange into a fiat or other currency. As the processor custodies and processes client funds temporarily, they constitute a VASP. These also include settlement services providers and crypto debit card operators.

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Issuance-Related Services (ICOs, IEOs, Launchpads)

Companies that help projects raise capital by issuing or distributing tokens fall under VASP rules in many jurisdictions. This is especially true if they collect investor funds, provide custody of tokens, or act as intermediaries between buyers and issuers. Regulatory focus here is on investor protection and AML compliance.

Crypto ATMs & Kiosks

Running a kiosk enabling the public to purchase crypto via cash or withdraw cash in exchange for crypto constitutes a retail exchange. The regulator will usually categorise ATM operators as exchangers, so they are required to get a VASP license and apply KYC/AML controls.

White-Label Operators / “Exchange-in-a-Box” Providers

Even if your brand never faces the client, and you host and operate the backend infrastructure—order routing, settlement, custody—you are no less engaging in regulated activities. 

Authorities are now insisting these behind-the-scenes providers get and maintain their own licenses, and not simply rely on clients’ permissions.

Key Requirements to Obtain a VASP License

Obtaining a VASP license isn’t form-filling — the regulator requires evidence of a business being properly structured, financially solid, and seriously committed to complying.

To be considered, all applicants must satisfy a set of basic requirements that demonstrate the company's ability to operate responsibly and protect its customers.

Business Plan

Regulators want a robust plan which describes your services, target market, technology infrastructure, and finances in the future. It must reflect an awareness of the risks and a clear approach to operating a compliant, sustainable business.

AML/KYC Framework

Your license relies on effective compliance. You will require effective policies regarding verifying customers, spotting suspicious occasions, and reporting to the authorities. That involves the use of effective tools during identity verification, sanction checking, and blockchain examination.

Monetary Needs 

Your jurisdiction will also typically need evidence of funds and a minimum capital base, which will differ from country to country. You will also need to show the client that assets are held safely, separate from company funds, and that your owners and directors are “fit and proper” to operate the business.

Company Registration and Jurisdiction Choice

Where you register does count. Some jurisdictions are faster and cheaper, while others are stricter and prestigious. You will need to register locally, appoint local directors or compliance officers, and, in some cases, maintain an office. 

Reporting and Auditing Systems 

Once licensed, you will need to periodically submit financial and compliance data, client balance reconciliations, and audits. Strong governance, monitoring evidence, and straightforward escalation processes if issues are identified are what the regulators anticipate.

How B2BROKER Can Help You Get Licensed?

Getting authorised as a virtual-asset business is a legal and operational process that depends on your activities and the jurisdiction you choose. B2BROKER, we can equip you with the technology stack and consulting support you’ll need and connect you with vetted local partners where legal representation is required. We don’t guarantee approvals or timelines; regulators make those decisions.

Tailored Consulting Services

We start with your actual business model (flows, custody, order lifecycle) and map it to common regulatory focus areas (safeguarding of client assets, governance, controls). You’ll get an options overview that outlines likely permissions, typical routes, indicative timelines, and order-of-magnitude costs so you can make trade-offs and plan execution. (Decisions and timing ultimately depend on the chosen authority.)

Application Preparation Support

We help you prepare key artefacts (business plan, AML/KYC framework, risk assessment, procedures and internal controls) and organise supporting evidence. Where notarisation/apostille or a local representative is required, we coordinate with local providers rather than act as legal counsel. We also help you prepare for regulator queries and interviews; you remain the applicant of record. (Approval is not guaranteed.)

Jurisdiction Comparison & Sequencing

Licensing regimes differ on speed, cost, staffing/substance (e.g., local MLRO, office), banking access, and market fit. We compare options and propose a sequencing plan (for example, starting in one jurisdiction and adding another later) so compliance supports growth. Final requirements vary by authority.

Compliance and Reporting Frameworks

We design risk-based AML/CFT programs aligned to your flows (KYC/CDD/EDD, sanctions/PEP screening, transaction monitoring, Travel Rule connectivity, case management, recordkeeping) and set up reporting calendars (regulatory returns, audits, board/MLRO reporting) with clear escalation paths and runbooks. You’ll also have access to compliance tooling within our turnkey stack. 

Ongoing Regulatory Updates

Rules evolve (e.g., FATF guidance updates; EU’s MiCA framework for CASPs). We provide horizon scanning and impact notes and can assist with renewals, annual AML reviews, training, and change management when you add new assets, products, or countries. 

Final Remarks

The right authorisation for your activities can support market access and banking relationships, but requirements and timelines differ widely by jurisdiction. B2BROKER helps you plan, prepare, and operate with compliant infrastructure and workflows—while your team stays focused on building the business.