VASP Requirements: What You Need to Know About Crypto Compliance Rules

When you use a crypto exchange, wallet, or trading platform, you’re likely interacting with a Virtual Asset Service Provider, a company that handles crypto transactions, custody, or exchange on behalf of users. Also known as VASP, these entities are now legally required to follow strict rules in over 100 countries, including Australia.

VASP requirements aren’t just paperwork—they’re about stopping money laundering, terrorist financing, and fraud. If a platform is registered as a VASP, it must verify your identity (KYC), monitor your transactions, report suspicious activity, and keep records for years. This applies to exchanges like Binance or Kraken, but also to DeFi platforms that offer custody or trading services. The rules come from the Financial Action Task Force (FATF), a global body that sets anti-money laundering standards. Countries like Japan, Australia, and the EU have turned these guidelines into law, and failing to comply can mean heavy fines or outright bans.

What does this mean for you? If you’re using a crypto service in Australia, you’re probably already under VASP rules—even if you didn’t sign up for them. Your ID was checked, your transaction history is logged, and your wallet address may be flagged if it connects to high-risk addresses. The same rules apply to businesses: if you run a crypto service, you need a license, a compliance officer, and systems that track every coin movement. This isn’t just for big players. Even small crypto agencies and peer-to-peer facilitators can be classified as VASPs if they handle funds for others.

Some platforms try to dodge these rules by calling themselves "decentralized," but regulators aren’t fooled. If users rely on the platform to hold or move assets, it’s still a VASP. That’s why you see so many posts here about exchange restrictions in Nigeria, Russia, Cambodia, and Tunisia—each country enforces VASP rules differently, and many ban unlicensed services entirely. The same logic applies to airdrops and token launches: if they involve intermediaries handling user funds, they fall under VASP oversight.

You’ll find articles below that dig into how these rules play out in real markets—from Japan’s cold wallet mandates to Norway’s energy-based crypto bans. Some posts show how users bypass restrictions, while others warn about platforms that ignore compliance entirely. Whether you’re a trader, a business owner, or just trying to use crypto safely, understanding VASP requirements helps you avoid scams, legal trouble, and frozen accounts. The truth is simple: if a crypto service doesn’t follow these rules, it’s not just risky—it’s often illegal.