Regulatory Environment for Virtual Asset Services in British Virgin Islands (BVI)

Key Laws and Regulations

The following are the key laws and regulations that apply to companies involved in virtual asset services in BVI:

Financing and Money Services Act, 2009 (FMSA)

• Governs money services businesses in BVI
• Includes automated teller machine services, money transmission services, cheque exchange services, currency exchange services, and the issuance, sale, or redemption of money orders or travellers’ cheques

Anti-Money Laundering Regulations, 2008 (as amended)

• Applies to businesses that provide financial services, including those involved in virtual asset transactions
• Requires businesses to implement anti-money laundering measures, such as customer due diligence and transaction monitoring

Economic Substance (Companies and Limited Partnerships) Act, 2018

• Requires companies to demonstrate economic substance in BVI if licensed or registered under the International Business Companies Act or the Limited Partnership Act

Virtual Asset Service Providers Act (VASP Act)

• Governs the provision of virtual asset services in BVI, including exchange, transfer, and management of virtual assets

Compliance Requirements

To comply with these regulations, companies involved in virtual asset services must:

1. Register with the Financial Services Commission (FSC) under the VASP Act
2. Implement anti-money laundering measures, such as customer due diligence and transaction monitoring
3. Ensure economic substance in BVI if licensed or registered under the International Business Companies Act or the Limited Partnership Act
4. Comply with FMSA and other relevant laws and regulations

Consequences of Non-Compliance

Failure to comply with these regulations can result in penalties, fines, or even revocation of licenses or registration. It is essential for companies involved in virtual asset services to understand and comply with the regulatory environment in BVI.