How to Get VASP License
Global crypto adoption continues to grow—over 562 million people now own cryptocurrency, according to Triple-A’s 2024 Global Crypto Ownership report. That number has more than doubled in just two years. But as crypto companies scale, so do compliance obligations. Without proper licensing, many virtual asset service providers (VASPs) risk getting locked out of entire markets or penalized by financial authorities.
Getting a VASP license isn't just about ticking regulatory boxes—it’s the foundation for operating legally, building trust with banks, and expanding into compliant jurisdictions. The process, however, can be complex, time-consuming, and very jurisdiction-specific.
In this guide, you’ll learn how to secure a VASP license, what regulators typically require, and which jurisdictions offer the most strategic licensing options for crypto businesses. Let’s break down what it really takes to go from unlicensed startup to fully compliant virtual asset entity.
What Is a VASP License and Who Needs It?
A VASP license legally authorizes companies to offer services involving virtual assets, including crypto exchanges, wallet providers, ICO platforms, and even NFT marketplaces. The license ensures that these companies follow Anti-Money Laundering (AML), Know Your Customer (KYC), and Counter-Terrorist Financing (CTF) standards.
In most cases, if your platform deals with transferring, exchanging, or safekeeping digital assets, you're classified as a VASP under the FATF (Financial Action Task Force) definition. Operating without a license in a regulated jurisdiction could lead to asset freezes, fines, or business shutdowns.
Core Requirements for Obtaining a VASP License
Though requirements vary by country, regulators typically demand a combination of corporate structure, governance standards, and compliance measures. Here's what you’ll need in most jurisdictions:
✔️ Legal Entity Registration
You must incorporate your business in the jurisdiction where you’re applying. Some countries require a local director or registered office.
✔️ AML/KYC Framework
Authorities expect documented procedures for customer onboarding, transaction monitoring, suspicious activity reporting, and data retention.
✔️ Compliance Officer
Most jurisdictions require you to appoint a local compliance officer who has the necessary experience in AML laws and financial regulation.
✔️ Capital Requirements
Some countries require minimum capital—anywhere from €10,000 to €125,000 depending on the size and risk profile of the business.
✔️ Clean Criminal Record
Key persons (directors, shareholders, UBOs) usually must provide a police clearance or affidavit of no criminal history.
Best Jurisdictions to Obtain a VASP License
The best jurisdiction depends on your business model, customer base, and long-term expansion plans. Here's a snapshot of popular options:
Each jurisdiction has nuances in how they treat custodial services, token issuance, and foreign founders. That’s why legal consultation is not optional—it’s essential.
Step-by-Step Guide to Securing a VASP License
Securing a VASP license involves more than just filling out forms. You need a full legal and compliance framework in place. Here’s a simplified roadmap:
1.Choose the Right Jurisdiction
Align your goals with the strengths of the jurisdiction. Consider language, time zone, tax structure, and regulatory attitude.
2.Set Up the Legal Entity
Register your company locally. Prepare required documents like Articles of Association, shareholder registry, and director appointments.
3.Prepare AML Policies
Draft internal AML/KYC procedures. Include transaction thresholds, client risk scoring, and escalation protocols.
4.Appoint Key Staff
Hire or contract a local compliance officer and ensure directors meet the jurisdiction’s fit-and-proper criteria.
5.Submit License Application
File the application with the local regulator. Include business plan, AML manuals, CVs, financial forecast, and passport copies.
6.Wait for Regulatory Review
Regulators may request clarifications or additional documentation. Be responsive and accurate in replies.
7.Receive Approval & Start Operations
Once approved, you're authorized to legally operate and serve customers. Post-licensing obligations like regular reporting may apply.
Align your goals with the strengths of the jurisdiction. Consider language, time zone, tax structure, and regulatory attitude.
2.Set Up the Legal Entity
Register your company locally. Prepare required documents like Articles of Association, shareholder registry, and director appointments.
3.Prepare AML Policies
Draft internal AML/KYC procedures. Include transaction thresholds, client risk scoring, and escalation protocols.
4.Appoint Key Staff
Hire or contract a local compliance officer and ensure directors meet the jurisdiction’s fit-and-proper criteria.
5.Submit License Application
File the application with the local regulator. Include business plan, AML manuals, CVs, financial forecast, and passport copies.
6.Wait for Regulatory Review
Regulators may request clarifications or additional documentation. Be responsive and accurate in replies.
7.Receive Approval & Start Operations
Once approved, you're authorized to legally operate and serve customers. Post-licensing obligations like regular reporting may apply.
Common Mistakes That Delay Approval
Even companies with strong funding and experienced teams hit roadblocks when they overlook core compliance issues. Here are avoidable errors:
- Using generic AML templates instead of jurisdiction-specific ones
- Failing to appoint a qualified local compliance officer
- Submitting incomplete or inconsistent documents
- Choosing the wrong jurisdiction for their actual business model
- Underestimating post-licensing supervision and audits
Avoiding these missteps early saves time, money, and reputation.
Final Thoughts
Securing a VASP license is no longer optional for crypto firms aiming for serious growth. It’s the gateway to regulated partnerships, bank accounts, and long-term market confidence. But the path to licensing isn't one-size-fits-all—it requires jurisdictional strategy, legal precision, and operational discipline.
Looking to get licensed? Explore our VASP license support service and see how we can guide you from zero to fully regulated.
Book a Free Consultation https://bmpglobal.io/book-meeting
