A regulatory designation for businesses conducting exchanges or transfers of digital assets.
A regulatory designation for businesses conducting exchanges or transfers of digital assets. While Lygos Finance never takes custody of borrower funds due to its DLC architecture, it operates strictly within institutional VASP and lending guidelines to facilitate legal fiat loans.
A Virtual Asset Service Provider (VASP) is defined by global watchdogs like the FATF as any business that facilitates the exchange, custody, or transfer of cryptocurrencies. VASPs are subject to strict regulatory frameworks, including the Travel Rule, to prevent money laundering and terrorist financing. Compliance is essential for interacting with traditional global financial networks.
While Lygos Finance never takes custody of borrower funds due to its DLC architecture, it operates strictly within institutional VASP and lending guidelines to facilitate legal fiat loans.
Understanding VASP (Virtual Asset Service Provider) matters because regulatory frameworks directly affect which lending platforms are available to you, how your assets are protected, and what recourse you have if something goes wrong.
Starting at 10% APR, $0 origination fees, and DLC-secured collateral on the Bitcoin blockchain.