VASP License: Complete Guide to Virtual Asset Service Provider Licensing

Introduction

If you are launching or operating a cryptocurrency exchange, custody platform, payment service, or stablecoin business, you will need a VASP license. It is the regulatory approval that allows you to operate legally, access banking and payment networks, and serve customers in regulated markets.

This guide explains what a VASP license is, what regulators require, where to get licensed, what it costs, how long it takes, and how to run a successful application.

Buckingham Capital Consulting is a leading international regulatory and licensing firm with over 15 years of experience supporting crypto and payments businesses across Europe, the United Kingdom, the Middle East, Asia Pacific, and North America. We provide full end-to-end support, from jurisdiction selection through to authorisation and ongoing compliance.

VASP Licensing at a Glance

Typical timelines

• Faster jurisdictions such as Lithuania, Poland, and Australia: often 3 to 6 months

• Mid tier jurisdictions such as France, the United Arab Emirates, and Switzerland: often 6 to 12 months

• Highly regulated markets such as the United Kingdom, Germany, Singapore, and Malta: typically up to 12 months

Before applying you need AML and CTF policies tailored to crypto risks, fit and proper evidence for directors and owners, a real local operating setup, sufficient capital to fund the business through licensing, and a clearly defined business model.

Start your application: Call 020 7866 2512 or email info@buckinghamcapitalconsulting.co.uk.

How Buckingham Capital Consulting Can Help

Buckingham Capital Consulting supports crypto exchanges, custody providers, payment platforms, and stablecoin issuers through the full licensing and compliance lifecycle.

We manage:

• Jurisdiction selection based on your business model and markets

• All regulatory documentation, policies, and financials

• Application submission and regulator engagement

• Interviews, audits, and information requests

• Post-authorisation compliance and ongoing regulatory support

Our team works with regulators, banks, and payment partners across multiple regions, giving clients a clear and efficient path from application to live operations.

What is a VASP License

A VASP license is regulatory authorisation to provide services involving cryptocurrencies, stablecoins, and digital tokens. The term comes from the Financial Action Task Force, which sets global standards for crypto regulation.

VASP activities include:

• Crypto to fiat exchange

• Crypto to crypto exchange

• Transfers of crypto for customers

• Custody and safekeeping of digital assets

• Token and stablecoin related services

These rules apply to crypto exchanges, crypto custody providers, payment processors, and stablecoin platforms.

7 Core Requirements for a VASP License

1. AML and CTF framework

   Written policies, customer due diligence, transaction monitoring, blockchain analytics, and suspicious activity reporting.

2. Fit and proper management

   Directors, shareholders, and senior management must pass background, integrity, and competence checks.

3. Governance and control

   An independent MLRO, defined reporting lines, and board level oversight of compliance.

4. Capital and financial resources

   Sufficient funds to support operations, cover compliance costs, and maintain regulatory capital.

5. Local operational setup

   A registered company, physical office, local staff or compliance officers, and decision making based in the licensing country.

6. Systems and security

   IT security policies, access controls, incident response, and data protection aligned to financial services standards.

7. Business and financial documentation

   Detailed business plan, product descriptions, and three-year financial projections.

Top European Jurisdictions for a VASP License

Lithuania

A popular entry point for EU based operations with efficient processing and lower capital requirements. Often used by fast growing exchanges and wallet providers preparing for MiCA transition.

Germany

One of the most respected crypto regulatory regimes globally. BaFin authorisation is highly regarded by banks and institutional counterparties, particularly for custody and trading platforms.

France

Mandatory PSAN registration provides a clear legal framework. France offers strong regulatory credibility and access to a large domestic market.

Malta

An established crypto framework covering exchanges, custody, and token services. Suitable for firms operating multiple crypto activities under one licence.

Estonia

Requirements tightened since 2022, resulting in fewer but more credible licences. Often chosen by firms seeking a well regulated EU base.

Poland

A lower cost jurisdiction with a straightforward registration process and growing fintech and crypto sector.

Ireland

A leading financial services hub with a clear path into MiCA and strong relationships with banks and payment institutions.

MiCA introduces EU wide authorisation for crypto asset service providers. MiCA approval allows passporting across all 27 EU member states.

Leading Jurisdictions Outside Europe

United Arab Emirates

Dubai and Abu Dhabi offer purpose built crypto regulation with strong government backing, tax efficiency, and growing institutional adoption.

Singapore

A Payment Services Act licence is one of the most respected crypto approvals globally, giving strong credibility with banks, investors, and partners across Asia.

Hong Kong

A new licensing regime provides regulatory clarity for exchanges and trading platforms, combined with access to one of Asia’s largest financial centres.

Australia

A practical crypto exchange and AML registration regime with fast processing and access to a large domestic crypto market.

Canada

A clear MSB framework that provides regulated access to North American markets without the complexity of United States state licensing.

What Does a VASP License Cost

Costs depend on jurisdiction and business model. They typically include regulator fees, local offices and staff, compliance and MLRO roles, legal and advisory work, and security and IT testing.

Faster jurisdictions often fall in the tens of thousands. Highly regulated markets typically reach six figures.

How the VASP Licensing Process Works

1. Select the right jurisdiction based on your product, customers, and growth plans

2. Prepare compliance, governance, financials, and corporate structure

3. Submit the application and engage with the regulator

4. Respond to questions, interviews, and reviews

5. Receive authorisation and begin regulated operations

Frequently Asked Questions

How experienced is Buckingham Capital Consulting?

Buckingham Capital Consulting has over 15 years of experience delivering licensing and compliance projects for crypto, payments, and financial services firms across multiple regulators and jurisdictions, providing full end to end support from application through to live operation.

How long does a VASP license take?

Depending on jurisdiction and complexity, licensing typically takes between three months in faster markets and up to twelve months in highly regulated jurisdictions.

What are the main requirements for a VASP license?

Regulators require strong AML and CTF controls, fit and proper management, sufficient capital, local operational presence, secure systems, and detailed business and financial documentation.

Do you provide end to end licensing support?

Yes. Buckingham Capital Consulting manages jurisdiction selection, application drafting, regulatory engagement, interviews, and post-authorisation compliance so clients can focus on running their business.

Which countries are best for a crypto or VASP license?

This depends on your business model and target markets, but common choices include Lithuania, Germany, France, Malta, the United Arab Emirates, Singapore, and Hong Kong for firms seeking regulatory credibility and banking access.

About Buckingham Capital Consulting

Buckingham Capital Consulting is a leading international crypto licensing, compliance, and regulatory advisory firm. We support exchanges, custody providers, payment platforms, and stablecoin issuers across Europe, the United Kingdom, the Middle East, Asia Pacific, and the Americas.

From choosing the right jurisdiction through to regulatory approval and ongoing compliance, we provide end to end support for businesses that need to operate in regulated markets.

To discuss your VASP license or crypto licence, call 020 7866 2512 or email info@buckinghamcapitalconsulting.co.uk.