The British Virgin Islands (BVI) is aiming to become a major hub for digital asset activity. To achieve this, the territory is working to implement policies and systems that would enable it to participate in the growing digital asset market.
Lorna Smith, Minister of Financial Services, Labor and Trade, recently stated that the BVI is well positioned to be a significant player in the global digital assets market.
She underscored the need to adopt a robust set of principles for managing the area and stressed the importance of balancing innovation with regulatory compliance, local BVI News reported Tuesday.
She added that it is essential for the BVI to work closely with other countries to effectively address regulatory challenges and reduce financial crime in the digital asset space.
British Virgin Islands’ move toward secure cryptocurrency business
The BVI introduced the Virtual Asset Providers Act in 2022, which came into effect in February 2023. The legislation defines the types of virtual asset activities requiring registration, sets criteria, and clarifies the duties and responsibilities of registered entities.
It also grants certain powers to the BVI Financial Services Commission and establishes penalties for violations under the Act. During her speech, Smith highlighted the Act, saying that it clearly indicates the BVI’s commitment to creating a safe and supportive environment for digital asset businesses.
She also pointed to recent international developments in the field, such as the Financial Action T ask Force (FATF) standard, the OECD ‘s framework for tax reporting on crypto assets, and the European Crypto Asset Markets Regulation(MiCA), highlighting the global shift toward a more structured approach to digital asset management.
More than 60 license applications have been received
Among technology and crypto entrepreneurs, the BVI is gaining popularity. The region has received more than 60 license applications under the Virtual Asset Providers Law.
Smith expressed confidence in the BVI’s ability to become a global hub for digital assets, citing the region’s experience in financial and professional services, as well as a comprehensive legal framework.
However, there is another side to this growth. The BVI has also been a major venue for cryptocurrency fraud, ranking 9th globally in this infamous ranking.
