When a crypto company operates in the UK, it must register as a VASP, a Virtual Asset Service Provider required by law to prevent money laundering and terrorist financing. Also known as crypto service provider, it’s not optional—it’s the baseline for legal operation. If you’re running an exchange, wallet service, or even a crypto-to-fiat on-ramp in the UK, you’re likely a VASP. And if you haven’t registered with the Financial Conduct Authority, the UK’s main financial regulator that enforces crypto compliance rules, you’re breaking the law.
The UK doesn’t just want you to know the rules—it wants proof you’re following them. That means showing you have real systems for anti-money laundering, procedures to detect and report suspicious crypto transactions, verified customer identities, and clear internal controls. It’s not about fancy software or marketing claims. It’s about paperwork, audits, and accountability. The FCA doesn’t care if you’re a startup or a billion-dollar platform. If you touch crypto and serve UK users, you need to be registered.
Why does this matter to you? Because unregistered platforms get shut down. Users lose access to their funds. Scammers hide behind fake ‘decentralized’ labels, but the UK doesn’t buy it. Look at cases like Hello Global Exchange or ZBX—both faced scrutiny because they claimed to be compliant while skipping the basics. VASP registration isn’t a badge you slap on your website. It’s a legal requirement backed by real enforcement. If you’re trading on a platform that doesn’t show its FCA registration number, walk away.
And it’s not just about exchanges. Even if you’re running a DeFi tool that lets UK users swap tokens or stake crypto, you might still fall under VASP rules. The FCA’s definition is broad, and it keeps expanding. This is why you’ll see posts here about dYdX blocking UK users, or why some exchanges quietly pull out of the market. They’re not leaving because of demand—they’re leaving because they can’t meet the bar.
What you’ll find in the posts below isn’t theory. It’s real examples: platforms that got it right, those that got caught, and the red flags that tell you when a crypto service is playing by the rules—or not. You’ll see how compliance affects your ability to trade, withdraw, or even claim an airdrop. No fluff. No buzzwords. Just what you need to know to stay safe, legal, and in control.
VASP registration in the UK is mandatory for crypto businesses targeting UK customers. Learn the 2025 requirements, application steps, Travel Rule rules, and why most applications fail-and how to avoid it.
