What it means
An activity-based definition
The FATF definition covers specified exchange, transfer, safekeeping or administration activities and certain financial services related to a virtual-asset offering. What an organization actually does matters more than its product name.
A framework, not a licence decision
The term supports international AML and counter-terrorist-financing standards. National implementation determines the applicable registration, licensing and other obligations. A merchant accepting assets for its own sales should not automatically be equated with every business conducting virtual-asset services for others.
Related concepts
Anti-money laundering, Know your customer, Payment service provider, Cryptocurrency wallet.
In practice
A concrete example
A business compares its custody and transfer activities with the relevant definitions before determining its obligations in the jurisdictions where it operates.
Technical notes & boundaries
FATF terminology alone does not determine a business’s licence requirements or prove compliance. A VASP classification and a national legal status are separate questions.
Go to the source.
Original references used for this definition. Product details and standards can change.