Virtual digital asset providers (VASPs) are entities that facilitate services related to virtual assets, such as cryptocurrencies and other digital representations of value. They play a crucial role in the growing cryptocurrency and blockchain ecosystem by enabling the exchange, transfer, and management of virtual assets.
Examples of VASPs include cryptocurrency exchanges, P2P platforms, crypto ATMs, custodians, and over-the-counter (OTC) desks.
Key functions of VASPs include:
Exchanging virtual assets: VASPs facilitate the trading of cryptocurrencies and other virtual assets between users.
Converting virtual assets: VASPs may convert virtual assets from one form to another, such as exchanging Bitcoin for Ethereum.
Transferring virtual assets: VASPs enable the transfer of virtual assets between users, either directly or through their platforms.
Managing and safeguarding virtual assets: VASPs provide services to safeguard and manage virtual assets, ensuring their security and integrity.
Facilitating financial services related to virtual assets: VASPs support various financial services related to the sale, purchase, and management of virtual assets.
VASPs are essential for the smooth functioning of the virtual asset ecosystem, as they provide a supporting infrastructure that allows users to trade and manage digital assets efficiently and securely.
They are subject to regulations and compliance requirements, such as the Financial Action Task Force (FATF) Travel Rule, which mandates the collection and sharing of customer information during virtual asset transactions.
Examples of VASPs in India: VASPs in India include entities that facilitate services related to virtual digital assets (VDAs), such as cryptocurrencies and other digital representations of value. Some of the notable VASPs in India are:
Cryptocurrency exchanges: These platforms facilitate the trading of cryptocurrencies, allowing users to buy, sell, and trade various digital assets. Examples include CoinDCX, WazirX, and CoinSwitch.
P2P platforms: These platforms enable users to trade virtual assets directly with one another, without the need for an intermediary.
Crypto ATMs: These machines allow users to buy and sell cryptocurrencies using fiat currency.
Custodians: Custodians store and manage users' virtual assets, ensuring their security and integrity.
Over-the-counter (OTC) desks: OTC desks facilitate direct trading between two parties without going through a public order book.
Crypto hedge funds: These funds invest in and manage portfolios of virtual assets for their clients.
Crypto trading platforms: These platforms offer various services related to the buying, selling, and trading of virtual assets.
As of now, 28 VASPs have registered with the Financial Intelligence Unit-India (FIU-IND). The Indian government has also issued guidelines and reporting requirements for these service providers under the Prevention of Money Laundering Act (PMLA).
Comments
Write Comment