When you trade crypto on a platform like MEXC or Bybit, that platform likely holds a VASP license, a legal requirement for entities that handle or transfer digital assets on behalf of others. Also known as a Virtual Asset Service Provider license, it’s the baseline rule that separates legitimate exchanges from risky or outright scam operations. Without it, a platform can’t legally operate in places like the EU, Singapore, Indonesia, or Nigeria—places where crypto rules are tightening fast.
A VASP license isn’t just a sticker on a website. It means the exchange follows strict AML compliance, anti-money laundering rules that force platforms to verify users, track transactions, and report suspicious activity. Think of it like a bank needing to ask for your ID before opening an account—but for crypto. If a platform doesn’t have this, it’s not just unregulated—it’s potentially helping criminals move stolen funds. That’s why countries like Indonesia now require a $6 million capital buffer just to apply, and why Nigeria’s SEC shuts down unlicensed platforms. The goal? Stop fraud before it starts.
But a VASP license isn’t just about money. It’s about trust. When a crypto project like CrossWallet or Jupiter runs an airdrop, users need to know the platform behind it isn’t going to vanish tomorrow. A licensed exchange has to keep records, submit audits, and answer to regulators. That’s why Iranian users rely on MEXC and XT.com—they’re among the few platforms with enough legal grounding to keep operating under sanctions. And when you see a fake airdrop like TRO or WELL, it’s almost always from a site without a VASP license. These scams thrive in the gray zones where no one’s watching.
Not every country enforces it the same way. Saudi Arabia bans banks from touching crypto, but individuals still trade—just without any licensed intermediaries. Meanwhile, Argentina’s hyperinflation pushed millions to crypto, and while there’s no formal VASP rule yet, users still need safe platforms to hold their savings. The truth? If you’re trading, staking, or even claiming an airdrop, you’re relying on someone else’s license. And if they don’t have one, you’re taking a risk no guidebook can fix.
Below, you’ll find real-world examples of how VASP rules shape crypto markets—from Indonesia’s capital rules to Nigeria’s new tax laws, from banned platforms in Algeria to the hidden P2P networks in Russia. These aren’t theoretical debates. They’re the rules that decide whether your crypto stays safe—or disappears.
In 2025, getting a crypto license costs between $2,000 and $150,000 depending on where you apply. Learn the real breakdown of fees, capital requirements, and hidden costs across top jurisdictions like Lithuania, Georgia, Dubai, and Switzerland.
