The British Virgin Islands Virtual Assets Service Providers Act, 2022 is the territory’s core statute for virtual asset service providers. The Act is No. 17 of 2022, was assented to on Dec. 23, 2022, was gazetted on Dec. 29, 2022, and came into effect on Feb. 1, 2023, according to the BVI Financial Services Commission. As of July 10, 2026, this profile treats the Act as in force.
Virtual asset service provider registration in the BVI
The Act creates a registration and supervision regime for persons carrying on virtual asset service business in or from within the Virgin Islands. Section 5 states that a person must be registered by the Commission before carrying on the business of providing a virtual asset service, and it also states that individuals may not carry on, or hold themselves out as carrying on, virtual asset services as a business. A BVI business company that carries on, or holds itself out as able to carry on, virtual asset service outside the Virgin Islands is deemed to be carrying on that business from within the Virgin Islands.
Registration may cover one or more categories: providing a virtual asset service, providing virtual assets custody service, or operating a virtual assets exchange. The BVI FSC’s registration guidance states that exchange operators, custody providers and other virtual asset service businesses require registration when they satisfy the Act’s definitions.
Scope of virtual assets and covered services
The Act defines a virtual asset as a digital representation of value that can be digitally traded or transferred and can be used for payment or investment purposes. The definition excludes digital representations of fiat currencies and certain digital records of fiat currency, securities or other financial assets. The Act’s service perimeter includes wallet hosting or custody, financial services connected to a virtual asset issuance, certain virtual asset kiosks and activities identified through Commission guidance.
The statute also identifies activities that do not, by themselves, amount to virtual asset services. These include solely developing or selling software or hardware, solely creating or selling a software application or virtual asset platform, operating a virtual asset network without customer-facing VASP activity, closed-loop non-transferable items and accepting virtual assets as payment for goods or services.
Key provisions for custody, exchanges and client assets
- Client assets and records: VASPs must maintain records sufficient to explain transactions, support financial statements and audits, document complaints and show AML/CFT controls. Client assets must be identifiable, segregated and protected.
- Custody services: Custody applicants must provide information on safekeeping facilities, security measures, segregation of client assets, disclosures, risks and client access. Registered custody providers must take steps to safeguard virtual assets and related instruments against theft and loss.
- Virtual asset exchanges: The Commission may impose conditions on exchange geography, user access, marketed client types, tradable assets, listing issues, conflicts, price discovery, client disclosures, technology resilience, clearing and settlement, financing and other controls.
AML/CFT, supervision and enforcement
The Act requires VASPs to take appropriate steps to comply with the Act and other Virgin Islands laws relating to money laundering, terrorist financing and proliferation financing, and to put systems and procedures in place for that purpose. FSC guidance adds that VASPs should address customer due diligence, enhanced due diligence, recordkeeping, statutory reporting and risk monitoring. Separate Travel Rule guidance states that VASPs in scope of BVI law must be registered under the Act and comply with the Travel Rule as integrated through 2023 amendments to the AML framework.
The Act gives the Commission oversight tools including registration conditions, reporting requirements, powers relating to significant or controlling interests, directions regarding misleading advertisements, cancellation or revocation of registration and enforcement powers. Existing providers that were carrying on virtual asset services when the Act came into force had a six-month transition period; the FSC stated that completed applications had to be submitted by July 31, 2023 to continue pending determination.
Status and timeline
| Event | Date | Profile treatment |
|---|---|---|
| FSC consultation announced | Sept. 9, 2022 | Proposed framework |
| Assent | Dec. 23, 2022 | Enacted / assented |
| Gazette publication | Dec. 29, 2022 | Published as Act No. 17 of 2022 |
| Commencement | Feb. 1, 2023 | In force |
| Transitional application deadline | July 31, 2023 | Closed |