An Analysis of Global VASP Registration by Region

This in-depth analysis follows our previous study of geographical references in Virtual Asset Service Providers’ (VASPs) terms and conditions, expanding into the domain of global VASP registrations. The VASP industry, driven by the rise of digital assets, has grown significantly, now reaching more than 2700 entities spanning 106 countries. The geographical spread of these registrations illuminates the international scope of digital assets and the varied regulatory landscapes across the globe.

Comparing the top 10 countries in VASP registrations, we observe the following:

RankCountryShare
1Estonia11.4%
2United States of America8.1%
3United Kingdom of Great Britain and Northern Ireland7.9%
4Lithuania7.2%
5Singapore6.3%
6Canada3.6%
7British Virgin Islands3.3%
8Hong Kong3.2%
9Seychelles2.9%
10Australia2.7%

These rankings gain further intrigue when juxtaposed with the top countries mentioned in VASPs’ terms and conditions:

RankCountryShare
1United States of America9.94%
2United Kingdom of Great Britain and Northern Ireland9.89%
3Estonia8.17%
4Singapore6.77%
5Lithuania5.27%
6British Virgin Islands3.98%
7Hong Kong3.65%
8Seychelles3.60%
9Australia2.42%
10Canada2.10%

Although the precise rankings differ, the overlap in countries reveals their key role within the VASP industry. Estonia leads the pack in VASP registrations, perhaps driven by its advanced digital asset regulations, while the United States tops the list of countries mentioned in terms and conditions, signaling its considerable influence on the world stage.

Analyzing VASP registrations by region, certain areas emerge as leading players:

RankRegionShare
1Europe40.43%
2Asia15.98%
3North America11.75%
4Offshore Centers11.76%
5Oceania3.31%
6Central & South America2.35%
7Africa1.14%

Notably, Europe holds the largest share of VASP registrations, a fact that could be attributed to the progressive regulatory environment, particularly the implementation of the Markets in Crypto-Assets (MiCA) regulation. The MiCA framework promotes transparency, fairness, and investor protection in

crypto-assets markets, setting a ‘gold standard’ for digital asset regulations that could be attractive for VASPs.

The fact that the top countries are similar in both VASP registration and terms and conditions highlights the correspondence between regulatory environments and operational preferences. Moreover, the strong presence of Offshore Centers in VASP registrations signifies the strategic advantages that these jurisdictions offer, such as more flexible regulations and tax benefits.

In conclusion, the geographical distribution of VASPs offers rich insights into the global landscape of digital asset regulation. Understanding these dynamics is essential for policymakers, investors, and businesses aiming to navigate the fast-evolving digital asset ecosystem. The influence of regulatory frameworks, such as MiCA in Europe, highlights the potential of well-articulated policies in fostering growth in the sector. Future trends in VASP registrations and terms of conditions references will undoubtedly continue to reflect the unfolding regulatory landscape of digital assets worldwide.