Beneficial Ownership Registers for
BVI Business Companies and
Limited Partnerships

BVI VASP License
Wishing to get VASP licensed in BVI?

Introduction

In accordance with existing financial services regulations, any activity outlined within these regulations necessitates the acquisition of licensing, authorization, or approval, unless explicitly exempted.

In accordance with the definition endorsed by the FATF (Financial Action Task Force), a virtual asset is a digital representation of value that can be digitally traded or transferred and is intended for payment or investment purposes. It is crucial to note that digital representations of fiat currencies are not considered virtual assets. The Commission’s stance is that virtual assets and their associated products possess intrinsic value, exhibit characteristics of property, and meet the criteria for intangible property.

When determining the necessity of licensing for activities related to virtual assets, it is essential to evaluate the following factors:

1. The way in which the virtual asset (commonly referred to as a crypto asset) is being utilized.
2. The nature of the business activities being proposed or conducted.
3. Whether the business activities are analogous to those conducted by traditional enterprises.
4. The attributes and economic substance of the offering or issuance, including the characteristics and business activities involved.

If an intermediary or activity falls under the definition of “relevant business” as defined in regulation 2 of the Anti-money Laundering Regulations, 2008, the regulated entity must ensure continual compliance with these regulations, including the Anti-Money Laundering and Terrorist Financing Code of Practice, 2008, the Regulatory Code, and the Financial Services Commission Act, 2001.

From a regulatory perspective, virtual asset products can be subject to oversight in two primary ways: initially upon issuance and subsequently when they are held by an owner or become the focus of an investment activity.

Virtual assets and virtual asset-related products used exclusively for the purpose of purchasing goods and services, such as utility tokens that enable the acquisition of goods and services, would not fall under the purview of financial services legislation.

However, if a virtual asset product or service confers a benefit or right beyond serving as a medium of exchange, it may come under the scope of the Securities and Investment Business Act, 2010 (“SIBA”).

The following information offers guidance on the relevant laws, the types of products involved, and whether they should be subject to regulation by the Commission. These guidelines may not cover all possible scenarios, so if a virtual asset product exhibits characteristics resembling a regulated activity under SIBA but is not explicitly mentioned, it is advisable to seek the Commission’s views and guidance before proceeding with the activity within the Territory.

VASP Virtual Assets Service Providers
Act 2022

In December 2022, the British Virgin Islands (BVI) enacted the Virtual Assets Service Providers Act, 2022 (the Act) which came into force on February 1, 2023. The Act introduces a formal supervisory framework for virtual assets service providers.

The Act defines key terms relevant to this fintech space, prescribes requirements for registration under the Act, and details ongoing obligations, among other matters.

Key Definition – Virtual Asset
Under the Act, a virtual asset is defined as a digital representation of value that can be digitally traded or transferred, and can be used for payment or investment purposes, but does not include (a) digital representations of fiat currencies and other assets or matters specified in guidelines; or (b) a digital record of a credit against a financial institution of fiat currency, securities or other financial assets that can be transferred digitally.

Who is a Virtual Asset Service Provider (VASP)?

Pursuant to the Act, a VASP is a Virtual Asset Service Provider who provides, as a business, a virtual assets service and is registered under the Act to conduct one or more of the following activities or operations for or on behalf of another person:

• exchange between virtual assets and fiat currencies;
• exchange between one or more forms of virtual assets;
• transfer of virtual assets, where the transfer relates to conducting a transaction on behalf of
  another person that moves a virtual asset from one virtual asset address or account to another;
• safekeeping or administration of virtual assets or instruments enabling control over virtual
  assets;
• participation in, and provision of, financial services related to an issuer’s offer or sale of a virtual
  asset; or
• perform such other activity or operation as may be specified in the Act or as may be prescribed
  by regulations made under the Act.

It should be noted, however, that a person who engages in or performs any of the following activities shall not qualify or be treated as a VASP:

• providing ancillary infrastructure to allow another person to offer a service, such as cloud data
  storage provider or integrity service provider responsible for verifying the accuracy of
  signatures;
• providing service as a software developer or provider of unhosted wallets whose function
  is only to develop or sell software or hardware;
• solely creating or selling a software application or virtual asset platform;
• providing ancillary services or products to a virtual asset network, including the provision of
  services like hardware wallet manufacturer or provider of unhosted wallets, to the extent that
  such services do not extend to engaging in or actively facilitating as a business any of those
  services for or on behalf of another person;
• solely engaging in the operation of a virtual asset network without engaging or facilitating any
  of the activities or operations of a VASP on behalf of customers;
• providing closed-loop items that are non-transferable, non-exchangeable, and which cannot be
  used for payment or investment purposes; and accepting virtual assets as payment for goods and services (such as the acceptance of virtual assets by a merchant when effecting the purchase of goods).

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.