What Is a Virtual Asset Service Provider Under Jamaican Law?

A plain-English definition of a VASP under Jamaica’s proposed regime — the activities that bring you in scope, who is excluded, the decentralised-finance question, and how it all tracks the FATF standard.

In short: a virtual asset service provider (VASP) is a business that, for or on behalf of others, provides virtual-asset services — operating an exchange, custody, broker-dealing, advice, wallet services or conversion. Under Jamaica’s proposed Virtual Asset Service Providers Act, anyone carrying on these activities in or from Jamaica must be licensed by the Financial Services Commission (FSC). Pure software developers, hardware-wallet makers and other ancillary providers are generally outside scope — unless they themselves provide virtual-asset services for others. Whether you are a VASP turns on what you do, not on the technology you use or what you call yourself.

What is a virtual asset?

Definition A virtual asset is a digital representation of value that can be digitally traded or transferred and used for payment or investment purposes. It includes assets such as cryptocurrencies and tokens recorded on a blockchain or distributed ledger. It does not include digital representations of fiat currency, or assets already captured by other financial-services regulation, which are treated under their own frameworks.

The definition is deliberately functional and technology-neutral: it focuses on what the asset does (stores and moves value digitally) rather than the specific technology behind it. The precise meaning of “virtual asset” will be set out in the VASP Act, and the FSC’s guidance makes clear the regime applies regardless of the technology or method of delivery used — whether the asset moves through a centralised platform, a decentralised protocol, a smart contract or any other mechanism.

One nuance is worth flagging early. Some tokens may also meet the definition of a security, a commodity or another regulated instrument under existing Jamaican law. Where they do, that separate regime can apply alongside, or instead of, the VASP framework — which is precisely why a trading platform must assess, as part of its listing policy, whether any asset it admits constitutes a regulated financial instrument. Classifying your assets early matters: it avoids being unexpectedly caught by two regimes at once, or by the wrong one.

What is a virtual asset service provider (VASP)?

Definition A virtual asset service provider (VASP) is a person or business that, as a business and on behalf of others, provides one or more virtual-asset services — such as operating a trading platform, safekeeping or administering virtual assets, dealing or brokering, advising, providing wallet services, or converting between virtual assets and fiat. The key hallmark is providing the service for or on behalf of another person — not merely transacting for yourself.

That “on behalf of others, as a business” test is the heart of the definition. Someone who buys and holds virtual assets for their own account is not a VASP. A business that holds, moves, exchanges or advises on virtual assets for customers is. The terms “virtual asset,” “virtual asset services” and “virtual asset service provider” will all carry the meanings given to them in the VASP Act, but the underlying logic is the FATF activities-based approach explained below.

The activities that make you a VASP

Jamaica’s regime, like the international standard, defines VASPs by reference to a set of activities. The FSC organises these into six licence classes. The table maps the recognised virtual-asset activities to the Jamaican licence classes.

Virtual-asset activity	Jamaican licence class
Operating a platform/exchange that matches buy and sell orders	Class A (Trading Platform)
Advising on virtual assets (investment advice, portfolio management)	Class B (Advisory)
Safekeeping/administration of assets, or instruments giving control	Class C (Custody)
Dealing in virtual assets as principal or agent for clients	Class D (Broker-Dealer)
Providing wallet infrastructure to store and transfer assets	Class E (Wallet)
Converting between virtual assets, or to and from fiat	Class F (Conversion)

If your business carries on any of these activities for customers, you are a VASP and need the corresponding licence — and a separate licence for each class of activity. We cover how to choose between them in “The Six VASP Licence Classes in Jamaica: Which One Does Your Business Need?”

Who is NOT a VASP? Exclusions and edge cases

Just as important as what is in scope is what is out. The regime is careful not to sweep in those who merely build tools or support the ecosystem without providing services to customers. The following are generally outside the VASP perimeter:

• Pure software developers and sellers. A person who solely develops or sells virtual-asset software or platforms is not a VASP — provided they do not also engage, as a business, in virtual-asset services on behalf of others.
• Hardware-wallet manufacturers. Makers of hardware wallets and similar devices are excluded to the extent they do not conduct virtual-asset activities on behalf of customers.
• Other ancillary providers. Providers of purely supporting services that do not themselves involve handling or transacting virtual assets for others generally fall outside the definition.
• Individuals transacting for themselves. A person buying, holding, selling or transferring virtual assets for their own account is not providing a service to others and is not a VASP.

Two cautions, though. First, these exclusions hold only so long as the person does not cross into providing services for others — a wallet maker that starts custodying customer assets, or a developer that starts running an exchange, becomes a VASP. Second, individuals cannot be licensed at all: only a Jamaican-incorporated company may hold a VASP licence, and it will be an offence for a natural person to offer virtual-asset services in or from Jamaica without a licence.

The DeFi question: “control or sufficient influence”

Decentralised does not always mean unregulated A decentralised-finance (DeFi) application, considered purely as a software programme, is not itself a VASP. But any person who maintains control or sufficient influence over a DeFi arrangement may fall within the VASP definition where they provide or actively facilitate virtual-asset services through it — for example, founders, operators or others who retain ongoing control, governance rights, or the ability to direct the service.

This mirrors the international approach and is designed to prevent “decentralisation theatre” — labelling a service decentralised to escape regulation while a small group in fact controls it. The practical test is not the marketing but the reality: does an identifiable person or group exercise control or sufficient influence over the arrangement and, through it, provide a virtual-asset service to others? If so, that person may be a VASP, regardless of how decentralised the protocol appears.

How the Jamaican definition tracks FATF

Jamaica’s definition is deliberately aligned with the Financial Action Task Force (FATF) standard, which the country is committed to meeting to avoid the risk of increased monitoring. FATF defines a VASP as a person who, as a business, conducts one or more of five activities for or on behalf of another:

• exchange between virtual assets and fiat currencies;
• exchange between one or more forms of virtual assets;
• transfer of virtual assets;
• safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets; and
• participation in, and provision of, financial services related to an issuer’s offer or sale of a virtual asset.

Jamaica takes this activities-based, technology-neutral logic and operationalises it through the six licence classes and the broader AML/CFT, conduct and prudential requirements. The alignment is not accidental: FATF Recommendations 1, 15, 16 and 26 require countries to license or register VASPs and apply equivalent anti-money-laundering measures, including the Travel Rule — and the FSC’s framework is built to satisfy them.

Why scope matters: the consequences of being a VASP

Being a VASP is not a label — it is a gateway to a full set of obligations. A licensed VASP must meet eligibility, capital and substance requirements, pass fit-and-proper tests, run a complete AML/CFT programme, meet conduct and prudential standards, and — for exchanges and custodians — provide a quarterly, independently audited proof of reserves. Just as significant is the flip side: providing virtual-asset services without a licence, once the Act is in force, is an offence. Getting your scope assessment right is therefore the first and most consequential question in the entire regime.

A quick test: are you a VASP?

Ask yourself these questions. If you answer “yes” to the first two and any of the rest, you are very likely a VASP and should plan for licensing.

• Do you act as a business (not merely for your own account)?
• Do you provide a service to or on behalf of other people?
• Do you operate a trading venue, hold or administer client assets, deal or broker, advise, provide wallets, or convert virtual assets?
• Do you — or an identifiable group — retain control or sufficient influence over the arrangement that delivers the service?

If your situation is genuinely borderline — a DeFi front-end, a hybrid model, or a service that touches virtual assets only incidentally — a formal perimeter assessment is worth doing before you build or launch, because the cost of getting it wrong (operating unlicensed, or over-building for a licence you do not need) is high either way.

What to do next

Start by writing down exactly what your business does for customers and testing it against the activities and exclusions above. If you are in scope, confirm your licence class in “The Six VASP Licence Classes in Jamaica,” then work through “VASP Licensing Requirements in Jamaica: The Complete Checklist.” For the full picture of the regime, see “Jamaica’s Proposed VASP Licensing Regime: The Complete Guide.”

Frequently asked questions

What is a VASP in simple terms?

A virtual asset service provider is a business that, on behalf of others, provides services involving virtual assets — such as running an exchange, holding assets in custody, dealing or brokering, advising, providing wallets, or converting between virtual assets and fiat.

Is a software developer a VASP?

Generally no. A person who only develops or sells virtual-asset software or platforms is not a VASP, provided they do not also provide virtual-asset services to others as a business. If they start operating a service for customers, they become a VASP.

Are DeFi platforms VASPs?

A DeFi application as pure software is not itself a VASP, but a person who maintains control or sufficient influence over the arrangement and provides or facilitates virtual-asset services through it may be a VASP — regardless of how decentralised it appears.

Can an individual be a VASP in Jamaica?

An individual who provides services to others is conducting VASP activity, but individuals cannot hold a licence — only a Jamaican-incorporated company can. Offering virtual-asset services without a licence will be an offence.

How does Jamaica’s definition compare to FATF’s?

It closely tracks FATF’s activities-based, technology-neutral definition, operationalised through six licence classes and aligned with FATF Recommendations 1, 15, 16 and 26.

How Dawgen Global can help The first question every prospective operator faces — “am I a VASP, and for which activities?” — is also the easiest to get wrong. Dawgen Global provides regulatory perimeter assessments that map your activities to the VASP definition and licence classes, flag borderline DeFi and hybrid cases, and set out your options before you build or launch. As an independent professional services firm, we also provide the assurance the regime requires, including proof-of-reserves and client-asset audits. We act as adviser and independent auditor to the virtual-asset ecosystem; we are not a licence applicant. For a VASP perimeter assessment, contact us at [email protected] or visit dawgen.global.

This article is part of The Caribbean Virtual Asset Regulation Imperative™ series by Dawgen Global, powered by DAGAF™ — the Dawgen Digital Asset Governance & Assurance Framework. It is general information based on the FSC’s consultation documents of 10 June 2026 and is not legal, regulatory or investment advice. The proposals remain subject to change following consultation.