Virtual Asset Service Providers (VASPs) play a key role in the purchase, sale, and management of virtual assets. However, despite their growing importance, there are some myths and misconceptions about their operation and regulation. Below, we will learn about the most common myths about Virtual Asset Service Providers (VASP).
They are not part of the traditional financial system
Many people and companies have come to believe that Virtual Asset Service Providers (VASPs) are not part of the traditional financial system. However, these providers are regulated by the financial sector and have platforms/ecosystems with different financial services, which allow buying, selling, or exchanging virtual assets. easy and intuitive way. In this way, VASPs become an indispensable bridge to “close the gap” between traditional financial systems and the decentralized world of digital assets.
Not regulated
Some people and companies think that Virtual Asset Service Providers (VASPs) are not regulated. However, VASPs are entities that operate under strict rules, regulations, and standards of different jurisdictions and the financial industry in general (for example, anti-money laundering and countering the financing of terrorism regulations). It is worth noting that VASPs help clients comply with various industry regulations, allowing for legitimate and more transparent virtual asset transactions to take place.
Services that require technological knowledge
Some people think that the services offered by Virtual Asset Service Providers (VASPs) require users to have certain technological knowledge in order to take advantage of all their benefits. However, many of these services are intuitive and accessible, as different technologies and financial services have been developed that allow clients to simplify different processes related to virtual assets, allowing them to be increasingly easier to use and accessible to all types of users, regardless of their level of skill or technological knowledge.
Low level of security
Some people and companies believe that Virtual Asset Service Providers (VASPs) have a low level of security on their platforms. However, there are several providers in the market that have a good reputation regarding security, which, in order to be more competitive in the sector, invest in software, tools, protocols and security measures to have a high level of security on their platform, in order to protect the digital assets and data of its users.
They only operate with cryptocurrencies
Many people and companies believe that Virtual Asset Service Providers only have the ability to operate with cryptocurrencies. However, the truth is that the VASP are financial entities that have developed different services to facilitate all types of financial operations, such as tablecoins, tokens, digital currencies, cryptocurrencies, and fiat currencies.
What do you think about this topic? Do you want to know more about the services offered by Pilsenga?
If you are interested in Pilsenga products or services, you can contact us by visiting the following link.
