VASP Requirements: What Crypto Businesses Must Do to Stay Legal

When you run a VASP, a Virtual Asset Service Provider that handles crypto exchanges, wallet services, or fiat on-ramps. Also known as crypto service provider, it's any business that moves digital assets for others—and in 2025, it's under more scrutiny than ever. If you're not following VASP requirements, you're not just risking fines—you're risking your entire operation. Governments don't just want you to know the rules; they want proof you're following them every single day.

These rules aren't optional. The EU’s MiCA regulation, the U.S. FinCEN guidelines, and FATF’s Travel Rule all demand the same core things: identity checks on users, transaction monitoring, and reporting suspicious activity. If you're handling crypto transfers between users, you must collect and store names, addresses, and wallet IDs for every transaction over $1,000. That’s not a suggestion—it’s a legal requirement. And it’s not just about Europe or the U.S. Countries like Australia, Singapore, and even Qatar now require VASP registration before you can operate legally. Skip this, and you could be shut down overnight.

Compliance isn’t just about paperwork. It’s about tools. You need software that can screen wallets against OFAC’s SDN list, flag high-risk addresses, and auto-generate reports for regulators. It’s also about people—hiring a compliance officer isn’t a luxury anymore, it’s a must. Look at what happened to BitWell and SIGEN.PRO: both vanished because they ignored these basics. Meanwhile, exchanges like BUX and Coinext stayed open because they built compliance into their core. The difference? One treated rules as a cost, the other as a shield.

And it’s getting stricter. By 2027, the EU will require even more detailed records on tokenomics, ownership structures, and source of funds. If you’re running a DeFi platform or a cross-chain swap service like Elk Finance, you’re still a VASP—even if you call it "decentralized." Regulators don’t care about your marketing claims. They care about who controls the keys and who benefits from the transactions.

Below, you’ll find real-world examples of what happens when VASP requirements are ignored, misunderstood, or half-implemented. From Algeria’s crypto ban to Australia’s consumer protection rules, these posts show how legal frameworks are shaping the crypto landscape—not just in theory, but in daily operations. Whether you’re launching a new exchange, running a wallet service, or advising clients, this collection gives you the exact details you need to stay ahead—without the fluff.