Key Considerations
for Entity
Due Diligence

As the digital asset ecosystem expands, financial institutions face increasing pressure to onboard Virtual Asset Service Providers (VASPs) with care, compliance, and confidence. This guide, Key Considerations for Entity Due Diligence, offers a structured framework to help risk, compliance, and onboarding teams evaluate the legal, operational, and financial integrity of crypto entities before engagement.

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This essential guide explores five core due diligence pillars every institution should assess:

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Key insights include:

• Jurisdictional footprint: Understand where a VASP operates, its regulatory environments, and exposure to sanctioned or high-risk regions
• Licensing status: Verify the legitimacy of licenses and regulatory oversight across global jurisdictions
• Crypto exposure: Analyze asset concentration, DeFi engagement, stablecoin usage, and potential solvency risk
• Supported assets and products: Evaluate the scope and risk of tokens and services offered, from NFTs to derivatives
• AML/KYC controls: Assess a VASP’s financial crime defenses, from sanctions screening and transaction monitoring to Travel Rule compliance