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VASP License Application

The application for an entity applying to the Commission to be licensed as a VASP must include the following information:

• the names and addresses of the persons proposed as directors and senior officers of the VASP (and at least two of the directors must be individuals);
• the names and addresses of the persons who hold shares, including their level of shareholding in the VASP;
• the names and addresses of the persons who have a ‘controlling interest’ in the VASP (which term refers to a person with control over the VASP, but who is not a shareholder or director);
• the physical address in the BVI of the VASP;
• the name and address of the auditor of the VASP including the auditor’s consent to act as such;
• the name and address of the proposed authorised representative of the VASP (whose main function is to be the intermediary between the VASP and the Commission);
• a detailed business plan in relation to the VASP which will need to include information relating to knowledge and expertise, size scope and complexity of the VASP, how the VASP will be marketed, human resource capacity, outsourcing arrangements, initial capital and financial projections, among other things;
• a written risk assessment of the VASP, outlining the risks the VASP will or may be exposed to and specifying how those risks are to be identified, measured, assessed, monitored, controlled and reported;
• a written manual showing how the applicant, if granted formation, intends to comply with the requirements of the Act and any regulations made thereunder, including how the applicant intends to safeguard against the activities of money laundering, terrorist financing and proliferation financing;
• the internal safeguards and data protection (including cyber security) systems intended to be utilised; and
• the system to be put in place on how the VASP will handle client assets, custodian relationships and complaints.

The Commission has the power to request additional information as it may consider appropriate in support of the application, in addition to that specified above. In addition, each director, senior officer, and person with a significant or controlling interest in the VASP must meet the “fit and proper” criteria as outlined in the BVI Regulatory Code. In making the fit and proper determination, the Commission will have regard to the (a) honesty, integrity, and reputation, (b) competence and capability, and (c) financial soundness of each of those individuals.

Functionaries and Ongoing Obligations of a VASP

A VASP must at all times have the following functionaries:

• an authorised representative;
• an auditor for the purpose of auditing its financial statements; and
• an individual approved by the Commission who acts as compliance officer, to ensure compliance by the VASP with the provisions of the Act and related legislation.

A VASP will also be subject to a number of ongoing obligations, including the following:

• to notify the Commission of any changes in the information submitted as part of its application;
• to submit a copy of its auditor’s report on an annual basis;
• to file a return containing various details relating to the financial position of the VASP, information on its client base including level of exposure and geographical location, key performance indicators, and complaints received from clients and how they have or are being resolved;
• to ensure that client assets are identified or identifiable, and appropriately segregated and accounted for, and to immediately notify any client and the Commission in the event that an asset has in any way been unlawfully interfered with or otherwise compromised (including details of the steps the VASP has taken or is taking to restore the client’s assets and protect the assets from any further unlawful interference or from otherwise being compromised); and
• to perform customer due diligence, comply with laws relating to money laundering, terrorist financing and proliferation financing, and maintain relevant records (which includes an obligation on the VASP to adopt measures to assist it in tracing and collecting the IP addresses of its customers, including their associated dates, stamps, geographical data, device indicators, virtual asset wallet addresses and transaction hashes).

In addition to the above, unless the VASP is listed on a recognised exchange, the consent of the Commission must be obtained prior to any person who owns or holds a significant or controlling interest in a VASP directly or indirectly selling, transferring, charging, or otherwise disposing of that interest in whole or part.

How Atrium BVI Can Help You!

The BVI has taken a significant step in establishing regulations for virtual assets service providers, reflecting the ongoing growth of the fintech sector. The Act offers clarity on various aspects, and it is anticipated that further guidelines will enhance understanding of how it applies to various business types in this evolving environment.

Atrium BVI boasts a dedicated business development team specializing in tailor-made wealth preservation and enhancement solutions. This expert team delivers tax-efficient structures to facilitate cross-border transactions.

The knowledgeable professionals at Atrium BVI will guide you in making informed decisions while providing continuous support throughout the process. They can assist you in devising and executing strategies that enable you to manage your financial affairs with absolute confidentiality in an environment free from adverse tax implications.

Should you have any question or related matter you may need to discuss or clarify, do not hesitate to contact us.

Our Business Team will be more than happy and pleased to provide you free assistance, to assist you to properly reach your professional goals.