Regulated activity

Virtual asset exchange (FATF)

Outside the EU, exchanging virtual assets for fiat currency or other virtual assets needs a virtual asset service provider (VASP) licence or a money transmitter / money services business (MSB) registration under FATF Recommendations. Dubai, Singapore and the US each add their own anti-money-laundering registration, fit-and-proper testing and local supervision on top.

Last verified 2026-09-24Markdown · Data (CC BY 4.0)
Virtual asset exchange (FATF): regulated activityFATF

Definition

Exchanging virtual assets for fiat currency or for other virtual assets as a business, as defined in the FATF glossary.

  • FATF, Glossary: virtual asset service provider (i), (ii): official text

Which licence you need

Licence families that typically permit this activity:

Where it can be licensed

Jurisdictions where virtual asset exchange (fatf) can be licensedAustraliaCanadaEl SalvadorIrelandSouth AfricaSwitzerlandUnited KingdomAbu Dhabi Global Market (ADGM)BermudaBritish Virgin IslandsCayman IslandsDubai (VARA)Dubai International Financial Centre (DIFC)MauritiusSeychelles
Licences in the Atlas that permit this activity
EU/EEA passportDomestic
Abu Dhabi Global Market (ADGM): VASP licence✓
Australia: VASP licence✓
Bermuda: Digital Asset Business Class F (Full) Licence✓
Bermuda: Digital Asset Business Class M (Modified) Licence✓
Bermuda: Digital Asset Business Class T (Test) Licence✓
British Virgin Islands: Virtual Assets Service Provider Registration✓
Canada: Money services business (MSB) registration✓
Cayman Islands: Virtual Asset Service Provider Registration✓
Dubai (VARA): Virtual Asset Exchange Services Licence✓
Dubai International Financial Centre (DIFC): Financial Services Permission with Crypto Token Activities Endorsement✓
El Salvador: Proveedor de Servicios de Activos Digitales (PSAD) registration✓
Ireland: Virtual Asset Service Provider AML/CFT Registration✓
Mauritius: Virtual Asset Broker-Dealer (Class M)✓
Mauritius: Virtual Asset Market Place (Class S)✓
Seychelles: Virtual Asset Service Provider Licence / Registration✓
South Africa: Crypto Asset Service Provider licence✓
Switzerland: Financial intermediary / VASP SRO affiliation✓
United Kingdom: Cryptoasset Business Registration (MLRs 2017)✓

Frequently asked questions

What anti-money-laundering obligations apply to FATF-registered crypto exchanges?

A regulated exchange runs customer due diligence, monitors transactions on an ongoing basis and reports suspicious activity to the financial intelligence unit. It also needs a travel rule solution that transmits verified originator and beneficiary details on every cross-border transfer.

Can a non-EU VASP exchange licence be passported internationally?

No. A VASP licence carries no international passport. One obtained in Singapore or Dubai applies strictly to that domestic market, so the operator needs a separate local authorisation in every other country where it actually solicits customers.

Last verified 2026-09-24Author Danil Marmysh, Founder & CEO, ProtegraReviewed by Anastasia Sidorenkova, Head of Licensing, ProtegraReport an errorReference information, not legal advice.

Sources

  1. FATF Glossary: virtual asset service provider (i), (ii) · retrieved 2026-09-24

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