VASP license in Europe
In recent years, the use of virtual assets has grown exponentially, leading to the emergence of Virtual Assets Service Providers (VASPs) to facilitate their exchange and storage. To ensure the integrity and security of these services, many European countries have introduced regulations requiring VASPs to obtain a license.
A VASP license is a legal authorization granted by a regulatory authority to a VASP allowing it to provide services related to virtual assets. The license ensures that the VASP operates in compliance with legal and regulatory requirements, including anti-money laundering (AML) and counter-terrorism financing (CTF) measures.
The specific requirements for a VASP license vary depending on the jurisdiction, but generally involve strict compliance with AML and CTF regulations. VASPs are typically required to implement robust KYC (know your customer) and transaction monitoring procedures, as well as conduct regular audits and maintain detailed records of transactions.
In addition to regulatory compliance, obtaining a VASP license can also enhance a provider’s reputation and legitimacy in the eyes of customers and investors. It can demonstrate that the provider is committed to transparency, security, and compliance with legal and ethical standards.
Thompson&Stein provides valuable support to clients seeking to obtain licenses for Virtual Asset Service Providers (VASPs) and assist with:
- Understanding the regulatory landscape: we provide clients with a clear understanding of the regulatory framework for VASPs in the relevant jurisdiction. This includes knowledge of the laws and regulations that apply to VASPs, as well as the requirements for obtaining a license.
- Preparing the license application: we prepare a thorough and complete license application that meets all the requirements set out by the regulatory authority. This includes preparing documentation such as organizational charts, risk management policies, and AML/CTF procedures.
- Liaising with regulatory authorities: we will communicate with regulatory authorities on behalf of the client, helping to ensure that the application is processed smoothly and efficiently. This can include responding to requests for additional information or documentation.
- Substance requirements: we can provide virtual, real office, AML officer services, local presence and contact person for the authorities.
With Thompson&Stein the process is smooth and efficient, and that the client is able to operate legally and in compliance with regulatory requirements.
Average cost of the license procedure: EUR 6.000