Virtual Asset Service Provider

A Virtual Asset Service Provider or VASP is any person or entity that operates a virtual asset exchange in Hong Kong. These entities are licensed by the Hong Kong Monetary Authority, the city's central bank.

From a paper released by KPMG (August 2022): Schedue 3B of the Amendment Bill defines operation of a VA exchange as provision of services through means of electronic facilities:

(1) Offers to sell or purchase virtual assets are regularly made or accepted in a way that forms or results in a binding transaction

(2) Persons are regularly introduced or identified to other persons in order that they may negotiate or conclude, or with the reasonable expectation that they will negotiate or conclude sales or purchases of virtual assets in a way that forms or results in a binding transaction

(3) Where client money or client virtual assets comes into direct or indirect possession of the person providing such service.