FINTECH COMPANY SUBMITS APPLICATION TO PROVIDE VIRTUAL ASSET SERVICES IN BVI

A innovative fintech company has submitted an application to the British Virgin Islands (BVI) Financial Services Commission (FSC) to provide virtual asset services in accordance with the Sandbox Regulations.

Ownership and Licensing Requirements

The BVI does not impose any restrictions on investment managers owning cryptocurrencies for investment purposes. However, if an investment manager holds virtual assets on behalf of a third party, it may be required to register under the Virtual Asset Service Provider (VASP) Act. The company’s status as an Approved Manager under the Approved Manager regime may also impact its registration requirements.

Mining

Mining cryptocurrencies remains an unregulated activity in the BVI, both within and outside of the territory. High electricity costs make large-scale mining in the BVI unlikely to be efficient.

Border Restrictions and Declaration

The BVI does not impose any general border restrictions on the ownership or importation of virtual assets. However, as part of anti-money laundering and terrorist financing efforts, travelers entering or departing the territory are required to declare amounts of cash exceeding $10,000.

Reporting Requirements

BVI companies providing virtual asset services in connection with transactions involving virtual assets valued at $1,000 or more will be subject to reporting requirements under the Anti-Money Laundering and Combating the Financing of Terrorism Regulations (AML Regs). The company may also need to comply with the OECD’s Crypto-Asset Reporting Framework and updates to the Common Reporting Standard.

Estate Planning and Testamentary Succession

Cryptocurrencies and other virtual assets have not been widely used in estate planning and testamentary succession under BVI law. In the event of a deceased individual holding virtual assets, their treatment will be determined by traditional conflict-of-laws rules and may require an application to the BVI High Court Probate Registry.

The company’s application is subject to review and approval by the FSC, which will assess its compliance with relevant regulations and guidelines.