What is a VASP?
A VASP (virtual asset service provider) is any business that exchanges, transfers, safekeeps or helps issue virtual assets for a client, as defined by the Financial Action Task Force. In the UAE this status triggers AML and KYC duties under federal law. VARA-licensed Dubai firms, including IWGT, are VASPs by definition.
KEY FACTS
| Full name | Virtual asset service provider (VASP) |
|---|---|
| Global standard | FATF Recommendation 15 and its Interpretive Note |
| UAE federal law | Cabinet Resolution No. 111 of 2022 |
| Dubai regulator | VARA (outside the DIFC) |
| Core duty | AML/CFT, KYC and travel-rule compliance |
| IWGT status | VARA-licensed Broker-Dealer, VL/24/12/002 — a VASP |
Source: FATF Recommendation 15 Interpretive Note; VARA public register, as of September 2026.
Which activities make a business a VASP?
FATF Recommendation 15 lists five activities that, carried out for a customer as a business, make a firm a VASP: exchange between virtual assets and fiat, exchange between virtual assets, transfer of virtual assets, safekeeping or administration, and services tied to an issuer's offer or sale. Meeting any one is enough; a retailer accepting USDT for an invoice is not a VASP.
In the UAE the category sits in federal law, Cabinet Resolution No. 111 of 2022. In Dubai outside the DIFC, VARA maps the FATF activities onto named licence categories such as Broker-Dealer, Exchange, Custody and Advisory (see the guide to VARA's licensing framework), so a VARA licensee is a VASP in substance even though the word rarely appears on the certificate. Outside Dubai the SCA, DFSA (DIFC) and FSRA (ADGM) license under their own regimes. A Broker-Dealer licence covers transfers of virtual assets for clients, which is why IWGT is a VASP under both frameworks.
Why it matters when selling USDT in the UAE
VASP status is what brings a crypto business inside anti-money-laundering law: a licensed VASP must verify your identity, screen for sanctions, keep records and apply the travel rule on qualifying transfers, which is why onboarding asks for a passport and, on larger tickets, source-of-funds documents. An unregistered provider owes you none of these duties and has no licence to lose.
Illustrative example
Before a 300,000 USDT sale, a client asks the desk for its licence number, looks it up in VARA's public register and finds a live Broker-Dealer entry: the firm is a VASP under UAE law. The same VARA licence lookup works on IWGT's licence, VL/24/12/002, and takes under a minute.
FAQ
Is every crypto exchange a VASP?
Yes, if it exchanges virtual assets for fiat or between virtual assets for customers as a business. A platform doing this without a licence is still a VASP under FATF's definition — it is simply an unlicensed one.
Does VARA use the word "VASP" on its licences?
No. VARA licenses named virtual asset activities such as Broker-Dealer, Exchange or Custody. Each one maps to a FATF VASP activity, so a VARA licensee is a VASP in substance, not in name.
What AML duties does a VASP have in the UAE?
A VASP must verify customer identity, screen for sanctions, keep transaction records and apply the travel rule on qualifying transfers, under Cabinet Resolution No. 111 of 2022 and VARA's rulebooks.
Is IWGT a VASP?
Yes. IWGT holds VARA licence VL/24/12/002 as a Broker-Dealer, a licensable virtual asset activity, which makes it a VASP under UAE law.
What happens if I deal with a provider that is not a registered VASP?
You lose the protections a licence brings — verified identity checks, sanctions screening and a named regulator to complain to. The provider can still take your funds; it simply owes you none of a VASP's legal duties.
Trade through a licensed VASP
IWGT is a VARA-licensed Broker-Dealer in Dubai (VL/24/12/002) — a VASP under both FATF and UAE law. All-in spread 0.08–0.40% by size, published openly.
SOURCES
- FATF — The FATF Recommendations (Recommendation 15 and its Interpretive Note; last updated June 2026), accessed 21 September 2026.
- FATF — Virtual assets and virtual asset service providers (R.15/INR.15 implementation updates), accessed 21 September 2026.
- UAE Legislation portal — Cabinet Resolution No. 111 of 2022, regulating virtual assets and their service providers, accessed 18 September 2026.
- VARA public register — licence status check, accessed 18 September 2026.
- IWGT licence and regulatory disclosures, September 2026.
This guide is informational and is not legal, tax or investment advice, nor an invitation to buy or sell any virtual asset. Rules and figures are as of September 2026 — re-check the sources before acting. Virtual assets may lose their value in full or in part and are subject to extreme volatility.