VASP Licensing — Global Overview

Related Jurisdictions

Related Frameworks

Key Facts

• **Exchange between digital assets and fiat currencies:** This covers cryptocurrency exchanges that allow users to buy and sell crypto with traditional money (EUR, USD, etc.). (AD)
• Exchange between one or more digital assets: This covers crypto-to-crypto exchanges, but modern regulatory frameworks now also include fiat-to-crypto transactions, crypto ETF/ETP creation and redemption models, and broker-dealer or clearing functions as part of digital asset exchange definitions. (AD)
• **Custody and administration of digital assets on behalf of third parties:** This covers services where an entity holds or controls private keys for virtual assets on behalf of clients. (AD)
• If a payment processor's activities involve the direct handling, exchange, or custody of digital assets (e.g., accepting crypto payments on behalf of merchants and converting them to fiat, or holding crypto for settlement), they will fall under the VASP licensing requirements for exchange and/or custody services. (AD)
• If a payment processor *only* facilitates fiat currency transactions that are *related* to virtual asset services (e.g., processing a credit card payment to a crypto exchange, but never touching the crypto itself), they might fall under traditional payment services regulations (requiring a payment institution license) rather than a VASP license, but the specifics would depend on the exact service model and AFA interpretation. Generally, if there's any direct interaction with the virtual asset, a VASP license is needed. (AD)
• Transfer of digital assets is subject to active regulatory development and finalization, with basis transfer rules still being refined and not yet settled like traditional securities. (AD)
• Issuance and placement of digital assets that qualify as 'digital securities' (e.g., certain STOs, security tokens) remain subject to SEC securities regulation, but other digital assets such as utility tokens, meme coins, and non-security asset-backed tokens are not covered under federal securities laws. (AD)
• Provision of financial advice related to digital assets is now subject to specific statutory registration and compliance obligations under the Digital Asset Market Clarity Act and IRS mandatory reporting requirements, making the prior generic advisory claim outdated. (AD)
• VASP licensing rules in relevant jurisdictions require minimum capital that can vary by the services offered and by the applicable regulatory regime; however, the original claim’s specific attribution to Law 35/2022 is not verified from the provided evidence and appears outdated or jurisdiction-dependent. (AD)
• Under MiCA, the €125,000 minimum capital requirement applies to Class 2 crypto-asset service providers that provide custody and administration of crypto-assets on behalf of clients, typically together with other Class 2 services; it is not a standalone Andorra-specific rule. (AD)