VASP License

Navigating the fast-paced world of cryptocurrency can feel like a high-stakes game today. While the market is full of innovation and new opportunities, it also comes with a complex patchwork of regulations that differ from one jurisdiction to another and change drastically over time, which is difficult to handle. That’s exactly where the VASP license comes in as a critical credential that separates legitimate, compliance crypto projects from the rest. We believe that regulatory compliance is not meant to be a roadblock. Rather, we are here to make it into a launchpad for your company’s secure growth in the frontier of finance from day one.

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What is a VASP License?

Ever wondered how crypto companies operate legally and safely today? The answer is a VASP license, short for Virtual Asset Service Provider. But what is a VASP license, and why is it significant for growing your crypto project? Think of this type of licensing as a seal of approval that allows your business to legally handle cryptocurrency for you, whether it means assets exchange, holding them in a wallet, or transferring them. Today, almost all jurisdictions require some form of authorization or registration to provide crypto-related services. The most popular jurisdictions with such requirements include the European Union, the United Arab Emirates (in particular the Emirate of Dubai), Australia, Hong Kong, and others.

It’s your passport that demonstrates your excellent adherence to the strict regulatory standards in your jurisdiction of choice in the world, where crypto and its regulation are evolving every second. Seeking to build your company on the long-term foundation of trust and credibility? Take a glance at the numerous operational advantages and new business opportunities the VASP license may offer.

Requirements for Obtaining a VASP License

Once you have decided to apply for your VASP license, it’s the right moment to focus on the regulatory requirements your company has to meet before you can submit your application. While the precise list of obligations will differ significantly among jurisdictions, there are common requirements you need to know about in advance. Typical compliance pillars include:

Incorporate in the target jurisdiction and establish any required local presence;
Appoint fit-and-proper directors; specific residency/number requirements may be applicable for the jurisdiction;
Appoint a Money-Laundering Reporting Officer (MLRO) and Compliance Officer (CO) (if required);
Meet capital or insurance thresholds where applicable;
Develop Anti-Money Laundering (AML) protocols;
Incorporate the Know Your Customer (KYC) policies;
Implement the Countering Financing of Terrorism (CFT) protocols;
Develop policies for sanctions screening, transaction monitoring, record-keeping, and reporting.

Necessary Documents

Collecting and polishing your complete paperwork for licensing is a crucial step to ensure your application goes smoothly. Here are the key documents you’ll need to prepare as you apply for most applications:

Business plan;
Constitutional documents and corporate chart;
Source of funds evidence;
Key personnel details;
AML and CFT policies and KYC/CDD workflows;
Due diligence for directors and shareholders, as well as companies' Ultimate Beneficial Owners (UBOs), if those differ;
Proof of address.

To ensure your accurate and efficient document preparation, you must cooperate with legal professionals at every stage of your licensing, from the initial consultation to the application’s final approval. At Fintech Harbor Consulting, we offer end-to-end support with obtaining the VASP license in crypto and will assist you with meeting all the compliance criteria, polishing your paperwork, and beyond.

License Application Process

Now that you know about the regulatory standards and documents required for getting the VASP license, it’s time to get practical and examine the licensing process itself. Here is how a typical journey of applying for the VASP crypto license usually looks like:

First, sign the service agreement to get the process started.
Next comes your document preparation and company incorporation in the target jurisdiction..
Make the share capital contribution, if required by the regulator in your jurisdiction
Submit your license application and the required documentation.
Next comes the application revision and potential questions from the relevant regulator. The sooner you respond to the requests, the quicker your application revision will go.
Upon your application’s final approval, you’ll be granted your license. Timelines vary by jurisdiction, scope, and the completeness and consistency of the application.

When it comes to starting your licensing journey, every step matters. In fact, the sooner you collect all the necessary documentation, the more accurately you complete the application, and the sooner you follow all the regulatory requirements, the higher the chances of your success. However, how to handle every step of the process by yourself? The good news is that you are not meant to figure it all out alone. Our team of legal experts is here to guide you through the application, documentation, compliance, and other stages of the procedure, so that you get your VASP license faster.

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VASP License Cost and Price

What about the price of obtaining your VASP license today? The key thing to remember is that the final price list is combined by several components, including one-time and recurring payments, and depends on your selected jurisdiction, the scope of activities, and the operational expenses associated with it. Below is your guide to what planning your VASP license cost will look like, so that you are fully prepared for the upcoming fees in your application process.

How the Cost of the License is Calculated

Wondering how to navigate the financial complexities of your licensing? We’re here to give you a complete overview of what your VASP budget will consist of. Take a look at the VASP license price breakdown, depicting the three main categories of expenses you should be aware of:

1. Setup and first-year fees:

2. Annual license supervisory and operational fees:

3. Additional services:

The pricing of the setup, annual license’s supervisory and operational fees, and additional services is heavily tied to the jurisdiction and scope of services you plan to provide. Therefore, it’s the best idea to consult with legal professionals who will explain all the financial nuances to you and help you meet all the payment deadlines hassle-free.

Factors Affecting the Price of the License

When it comes to calculating your expenses related to VASP licensing, keep in mind that the total cost depends on several factors, including the following:

The jurisdiction where you are getting the license: Fee schedules, local-presence rules, and supervisory intensity vary by country and regime.
The range of services you plan to offer: Are you just providing advice on crypto-assets and portfolio management? Or operating a trading platform? In short, the more services you aim to offer, the higher the cost of the license. Why? The wider range of activities usually requires stricter regulatory oversight and higher capital requirements.
Operational costs: The license-related expenses are more than just the application fee. Rather, they include the cost of developing robust Know Your Customer (KYC) and Anti-Money Laundering (AML) systems, hiring qualified key personnel, and paying for ongoing audits and other legal fees. Altogether, these operational expenses are often even more significant than the initial license cost itself.

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Benefits of a VASP License for Crypto Companies

Getting your VASP license provides you with a range of benefits that will help you enter today’s crypto market and expand your project with confidence:

1. Trust and credibility

Issued in a regulated jurisdiction, this license signals to your banking partners, clients, and investors that your business is legitimate and adheres to the strict regulatory standards. This, in turn, is essential for building long-term consumer and investor confidence.

2. Ongoing compliance and safety

The robust AML, CFT, and KYC policies ensure your legal operation and help prevent financial crimes from day one, as well as protect your company from reputational damage associated with non-compliance.

3. Expanded market access

Your project gets to legally serve customers in the jurisdiction where it is registered. Also, in certain regions, like the EEA under MiCA, a compliant license grants “passporting right”, potentially enabling your project to expand across multiple countries with a single license.

4. Broader access to financial services

With VASP licensing, banks and payment providers, as well as payment gateways, may be more willing to onboard you.

5. Investor and partner attraction

The license makes your project more attractive to institutional investors and strategic partners. It demonstrates your ongoing commitment to leading a transparent business in today’s ever-changing crypto landscape.

How VASP License Differs from Other Licenses

As you know now about the regulatory framework and the VASP license’s advantages for growing your business, let’s compare this. Below is a high-level comparison. Terminology and scope greatly vary by jurisdiction.

1. VASP (Virtual Asset Service Provider)

Used in multiple jurisdictions, including Mauritius, the UAE;

Issued by national regulators.

National laws and regulations.

A range of virtual-asset activities as defined in local regulations.

No single global standard requirements vary significantly by country;

Many jurisdictions adopted VASP licenses to comply with FATF before the implementation of regional regulations, such as MiCA in the EU.

2. CASP (Crypto-Asset Service Provider)

European Economic Area (EEA).

Markets in Crypto-Assets (MiCA) regulation.

A more specific list of services, including custody, operation of a trading platform, exchange, order execution, and providing advice on crypto assets.

Offers “passporting rights” and allows a single CASP license to be valid across the entire EU;

Strict requirements for governance, share capital, and consumer protection;

Aims to create a unified crypto market in the EU.

3. DASP (Digital Asset Service Provider)

El Salvador.

The Ley de Emisión de Activos Digitales (LEAD/Digital Assets Issuance Law) framework.

A wide range of services, including exchanges, custody, and token issuance;

Important note: A separate license is required for Bitcoin activities in El Salvador.

Notable tax benefits, such as 0% corporate income tax and capital gains tax;

Streamlined application process;

Сompared to the EU, it is more cost-friendly.

4. MSB (Money Services Business)

Canada and the United States.

The Financial Crimes Enforcement Network (FinCEN) in the United States and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) in Canada

Covers such activities as currency exchange and money transmission, which extend to virtual currency.

State-specific licenses are required in the US in addition to FinCEN registration; Canada uses a federal registration (FINTRAC).

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How to Adapt a VASP License for Different Jurisdictions

Obtaining your VASP licensing is a promising first step, but the journey does not end there. It is not automatically valid outside the issuing country.. Indeed, each jurisdiction applies its unique set of crypto laws, creating a patchwork of regulations around the globe. In practice, it means that while a VASP license from one country proves your ongoing compliance, you might need to adapt or, in some cases, apply for additional permissions to expand into new markets.

That’s why it is critically important to understand the specific requirements for minimum share capital, consumer protection, key personnel, and data security in each new territory you plan to enter. This strategic approach will ensure that your project remains a trusted player no matter where your clients are.

How to Choose the Right Jurisdiction for Obtaining a VASP License

Choosing the right jurisdiction for getting your licensing is the decision that will significantly impact your further business trajectory. Today’s global map of VASP license adaptation provides a variety of the choicest jurisdictions where you can start and grow your companyctions for starting and growing your company. Among many options for the VASP license in Europe and beyond, Mauritius and Dubai have become popular choices, each offering its own benefits, each with trade-offs. For instance, getting your license from Dubai’s Virtual Asset Regulatory Authority (VARA) gives you access to the fastest-evolving and ambitious jurisdiction in crypto, which is designed to foster innovation.

Meanwhile, Mauritius, regulated by the Financial Services Commission (FSC), provides a well-established financial center with a straightforward licensing process and a solid reputation for AML compliance. Compared to Dubai, Mauritius’ framework often features lower entry thresholds for certain classes (activity-dependent), making it a more favorable destination for startups. Ultimately, the key to selecting the right location for your licensing is to match your business goals to the opportunities and regulatory advantages available in a particular jurisdiction and to the specific scope of services you intend to provide.

Get Your VASP License Today

Are you ready to transform your crypto project into a fully compliant company? This journey of bringing your business vision to life can be structured and predictable. By understanding the regulatory requirements of popular jurisdictions, VASP’s advantages, and the application process, you have already taken the first step. Now, let us help you handle the rest. Equipped with our professional legal assistance, you will obtain your licensing with clarity, the right strategy, and streamlined execution. Our team is dedicated to assisting you throughout the entire journey and supporting you in maintaining ongoing compliance in the years to come. Contact us today for an initial consultation and begin your licensing adventure with confidence.

FAQ

What is a VASP License and why is it important?

A VASP license is a government-issued document that authorizes businesses to handle virtual assets like cryptocurrencies. With this permit, your company can offer such services as exchange, custody, and more. Why is it significant to get your project licensed? First of all, it demonstrates that your business follows strict security and Anti-Money Laundering (AML) regulations. Second, the VASP license protects your digital assets from scams and makes your role in the crypto landscape safer for you and your clients. It is achieved by the established, clear, and strict regulatory requirements for the license applicants.

What are the main requirements for obtaining a VASP License?

The major regulatory requirements include the following:

Incorporate in the target jurisdiction and establish any required local presence;
Appoint fit-and-proper directors; specific residency/number requirements may be applicable for the jurisdiction;
Meet capital or insurance thresholds where applicable;
Develop strong internal policies, such as Anti-Money Laundering (AML), Know Your Customer (KYC), and Countering Financing of Terrorism (CFT), including sanctions screening, transaction monitoring, record-keeping, and reporting.

Yet, keep in mind that the specifics, such as the amount of share capital or local presence obligations, differ among jurisdictions. That’s why it’s highly recommended to consult with our legal experts for the most accurate list of compliance requirements before the start of your licensing process.

How much does a VASP License cost, and what factors influence its price?

The pricing of the VASP license varies significantly among jurisdictions. Meanwhile, the core components of the final costs generally remain the same:

Setup and first-year fees:

Professional and legal expenses;
Share capital contribution and required banking/payment arrangements;
Regulatory filings, official fees, and any required notarization/apostille costs, including certification of documents if required;

Annual license supervisory and operational fees:

Annual government fees;
Corporate services;
Regulatory reporting;
Mandatory audits or attestations (where applicable).

Additional services:

Recruitment/onboarding of the key personnel;
Accounting fees;
Risk assessment and ongoing monitoring tools.

Make sure to contact us to calculate the most accurate price list for your VASP license.

How can a VASP License be adapted for different countries?

While a VASP license issued by the regulator of one country demonstrates your commitment to compliance, it does not authorize activity in other countries; you must assess local rules and may need to obtain a separate authorization/registration before offering services there. That’s why it is crucial to think globally but act locally, considering the specific standards for the share capital, consumer protection, and key personnel in each country where you plan to offer your crypto services. We’ll help you make the right decision and choose the licensing destination that best aligns with your business goals.

Where can a VASP License be obtained for crypto companies?

There is a large variety of jurisdictions to choose from when it comes to securing your company with a VASP license. From the popular financial hubs to smaller tech-friendly nations, they provide their unique regulatory benefits and opportunities. In Europe, the MiCA regulation is currently unifying the crypto landscape in the region. Under MiCA, authorized CASPs may passport services across the European Union and European Economic Area, subject to conditions being met.

Beyond Europe, the key destinations include the UAE, particularly Dubai, with its modern, crypto-friendly framework. Besides, you can also take a closer look at Mauritius and Singapore, which offer significant advantages for taxation, share capital, and operational scope. Although, do keep in mind that specific advantages depend on your activity, capital, and business model. How do you know what is the right choice? Our legal professionals will help you evaluate your goals and global ambitions and find the location that best fits your business model.

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