How do you check if a VASP is licensed? The most reliable way is to look it up on the local regulator’s official register: in Hong Kong, the SFC’s list of licensed virtual asset trading platforms; in Singapore, the MAS Financial Institutions Directory. Don’t stop at whether the name appears. Check that the licensed entity, license type and permitted activities match what the firm is actually doing for you.
Why Should Businesses Verify a Counterparty’s License?
Before a business sends funds to an exchange, OTC desk or custodian, whether that counterparty is licensed bears directly on the safety of the funds and on the business’s own compliance. An unlicensed platform faces no regulatory constraints on how it safeguards client assets or runs its operations, and if it collapses or is hacked, recourse is very limited. For licensed VASPs, counterparty verification is also part of their obligations: under the Travel Rule, a VASP must first establish whether the other side is a regulated VASP before deciding how to transmit originator and beneficiary information.
Where Can You Look Up a VASP’s License Status?
The Hong Kong SFC publishes a list of licensed virtual asset trading platforms on its website, along with an alert list of suspicious platforms that solicit Hong Kong investors without a license. The MAS Financial Institutions Directory can be searched by institution name and license type, and MAS also keeps an Investor Alert List of entities that may be mistaken for regulated firms. Most other jurisdictions have similar public registers. When you search, check three things: whether the licensed legal entity is the same one you are contracting with and paying; whether the license category covers the service you are receiving; and whether the license is still valid and carries any conditions or restrictions.
How Can Businesses Build License Checks Into Daily Operations?
The most important step is to check early. Complete the verification before adding a firm’s address to your whitelist, and archive the date, license number and a screenshot, rather than checking only at transfer time. Next, re-verify periodically, since licenses can be revoked, amended or restricted, and regular counterparties should be reconfirmed on a schedule. Third, combine license checks with on-chain risk screening, using KYT to confirm that the address really belongs to that firm and has no risky exposure. Manual lookups are easy to miss, and tooling can automate them; for example, Safeheron’s partnership with Regtank brings KYT and VASP regulatory status checks into the self-custody workflow.
Conclusion
To check whether a VASP is licensed, rely on the regulator’s official register and verify the licensed entity, license category and current status. Businesses should complete the check before whitelisting, re-verify regularly, and use KYT to confirm address ownership. Safeheron’s MPC Wallet-as-a-Service provides businesses with MPC key management and a policy engine.
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