DTSP Requirements: What You Need to Know About Digital Token Service Provider Rules

When you hear DTSP requirements, Digital Token Service Provider rules that govern who can legally handle crypto assets in regulated markets. These rules are not just paperwork—they’re the line between a crypto business that lasts and one that gets shut down overnight. Think of DTSP as a license to move digital money legally, like a bank license but for blockchain. It’s not just about registering your company. It’s about proving you know how to stop money laundering, verify users, and keep customer funds safe. Countries like Malta, Singapore, and the UAE have clear DTSP frameworks, and they’re getting stricter every year.

DTSP requirements often overlap with VASP compliance, Virtual Asset Service Provider rules that force crypto firms to act like financial institutions. VASP is the term used by the FATF, the global money laundering watchdog. If you’re running a crypto exchange, wallet service, or token issuer, you’re likely a VASP—and you need to meet DTSP rules to operate. In Nigeria, for example, only SEC-licensed VASPs can touch crypto. In Malta, you need one of four license classes under MiCA, and most applications fail because they skip the audit or don’t have proper internal controls. These aren’t theoretical checks. They’re real. Garantex and Grinex got blocked because they ignored them. A7A5 stablecoin was traced back to sanctions evasion because no one checked where the money came from.

DTSP requirements also tie into how you store data, handle user identity, and report suspicious activity. It’s not enough to say "we’re decentralized." If you’re taking money from users, regulators will treat you like a bank. That’s why projects like Polytrade or Unichain have to ask: Are we a platform or a service provider? If you’re offering swaps, staking, or yield, you’re probably under DTSP rules—even if you didn’t ask for them. The same goes for airdrops. If you’re giving away tokens and collecting emails or wallet addresses, you’re collecting personal data. That triggers privacy rules under CCPA or GDPR. And if you’re claiming your token is "unregulated," you’re just inviting trouble. The U.S., EU, and UK are all aligning on these standards. You can’t hide behind a website anymore.

What you’ll find in the posts below aren’t just random crypto stories. They’re real examples of what happens when DTSP requirements are ignored—or followed. From Nigerian businesses stuck in legal gray zones to exchanges that got hacked because they skipped security audits, every post connects back to one thing: regulation isn’t the enemy. It’s the foundation. If you’re building, investing, or trading in crypto today, you need to know what DTSP rules actually mean for you—not what some blog says they should mean.