Beneficial Ownership Registers for
BVI Business Companies and
Limited Partnerships

Incorporation as a VASP
VASP License Categories

A person who wishes to carry on in or from within the BVI the business of providing a virtual asset service may apply to the BVI Financial Services Commission (the Commission) to be established as a VASP to undertake such business in one or more of the following categories:

1. to carry on the business of providing a virtual assets service;
2. to engage in the business of providing a virtual assets custody service; and
3. to operate a virtual assets exchange.

These key categories are further defined below:

“Virtual Assets Service”

“Virtual Assets Service” means the business of engaging, on behalf of another person, in any VASP activity or operation (as outlined in the definition of “VASP”), and includes:

• hosting wallets or maintaining custody or control over another person’s virtual asset, wallet or private key;
• providing financial services relating to the issuance, offer or sale of a virtual asset;
• providing kiosks (such as automatic teller machines, bitcoin teller machines or vending machines) for the purpose of facilitating virtual assets activities through electronic terminals to enable the owner or operator of the kiosk to actively facilitate the exchange of virtual assets for fiat currency or other virtual assets; or
• engaging in any other activity that, under guidelines issued, constitutes the carrying on of the business of providing virtual asset service r issuing virtual assets or being involved in virtual asset activity.

“Virtual Assets Custody Service”

“Virtual Assets Custody Service” means the acceptance for safekeeping of virtual assets or instruments that enable a VASP to exercise control over the virtual assets or instruments.

An entity seeking to perform this activity will be required, in addition to other obligations imposed on a VASP, to undertake the following functions:

• enter into safekeeping arrangements with the owner of the virtual asset and related instruments, with respect to matters such as the duration of the arrangement, manner in which the virtual asset and related instruments s are to be held and maintained, fees payable, client access to the virtual assets, security, remedies available in the event of theft or loss, etc.;
• source and adopt best practices in relation to information technology to be applied to the safekeeping of virtual assets and related instruments the VASP maintains on behalf of the owner;
• ensure that any ancillary or subsidiary proceeds relating to virtual assets and related instruments accrue to the benefit of the owner of the virtual assets, unless otherwise agreed between the parties; and
• take such other measures as may be necessary to safeguard the virtual assets and related instruments held on behalf of third parties.

“Virtual Assets Exchange”

“Virtual Assets Exchange” means a trading platform that is operated for the purpose of allowing an offer or invitation to be made to buy or sell any virtual asset in exchange for money or any virtual asset and which comes into custody, control, power, or possession of, or over, any money or any virtual asset at any point in time during its course of business.

An entity operating a virtual assets exchange may be subject to certain restrictions and prohibitions, which may include conditions relating to:

• the geographic area in which the virtual assets exchange may carry on its business;
• the nature of the access of the users of the virtual assets exchange;
• the types of clients that the virtual assets exchange may market its services
• the types of virtual assets that may be traded on the exchange
• disclosures to be made to clients in relation to the operation of the virtual assets exchange, including disclosures relating to theft or loss of assets and any related insurance obligations;
• identifying and managing conflicts;
• price discovery mechanisms designed to detect and prevent price manipulation and unfair trading activities;
• supervision of trading activities, including actions concerning the freezing and suspension of trading of virtual assets;
• financing in relation to the purchase of virtual assets; and
• any other necessary control measures to safeguard the integrity of the virtual assets exchange and protect the interests of persons investing on the exchange.

It should also be noted that a VASP that is established to operate a virtual assets exchange shall not:

• provide financing to its clients for the purchase of virtual assets, unless (i) it obtains permission from the Commission, and (ii) it makes disclosures to its clients regarding the terms of, and the risk associated with, the financing;
• engage in trading or marketing activities in relation to any virtual assets for its own benefit which may be detrimental to the interests of its clients, unless such activities (i) are necessary for the operation of the virtual assets exchange, and (ii) have been disclosed to its clients prior to engaging in the trading or marketing activities;
• permit the trading of a virtual asset on its virtual assets exchange in a manner that is misleading or deceptive, or designed to defraud persons who subscribe for, or purchase, the virtual asset;
• permit a client to trade in or purchase a virtual asset on its virtual assets exchange without first satisfying itself that the client is aware of the risks involved in trading in, subscribing for, or purchasing, the virtual asset and making the appropriate disclosures to the client;
• provide fiat currency-to-fiat currency exchange services to users of its virtual assets exchange without the written approval of the Commission; or
• engage in any other activity which has the potential to compromise the integrity of the virtual assets exchange or erode public confidence in the exchange.

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.