Company Registration
1 Week
Local Director?
Yes
Bank Account Opening
4 Weeks
Travel Required?
No
Excellent
Based on 87 reviews
BVI VASP License
The BVI VASP license represents a landmark regulatory structure that allows companies within the British Virgin Islands to conduct business lawfully in the rapidly expanding cryptocurrency and blockchain industries. The license under the Virtual Assets Service Providers Act 2023 enables firms to offer services including exchange of cryptocurrencies, issuing tokens, managing digital assets, and wallet services in adherence to global AML/CTF/KYC standards with rigor.
- The British Virgin Islands has become one of the prime offshore financial centers, with its attractive tax policy, such as 0% corporate income and capital gains tax, drawing in global businesses. As per the BVI FSC Statistical Bulletin (Q2 2024), the region experienced strong expansion in financial services, reflecting the solid infrastructure supporting digital asset business.
- To register company in BVI and obtain a VASP license, companies must meet stringent standards, including developing robust risk management systems and being proactively involved with regulators. Obtaining a license may take between three and six months, and it is transparent and secure for all parties involved.
- Tetra Consultants specializes in guiding clients through every stage of applying for a BVI VASP license, including documentation and compliance, so businesses can expand their footprint in this thriving jurisdiction without much hassle.
What is a BVI VASP license?
- A BVI VASP license is a license of a virtual assets service providers granted under the British Virgin Islands’ Virtual Assets Service Providers Act, 2022, and it authorizes business entities operating blockchain and cryptocurrency businesses. The license grants entities the right to provide such services as management of digital assets, custodial services, issuing of digital assets like tokens, and exchange of cryptocurrencies.
- The BVI has become a jurisdiction that is pro-crypto and has a solid regulatory framework for supporting innovation along with guarantee of compliance with global standards of anti-money laundering (AML), counter-terrorism financing (CTF), and data privacy.
- As per the Financial Services Commission (FSC), this license not only validates operations but also promotes business credibility and access to international markets. In addition, the BVI’s tax-friendly policies attract digital asset companies. Companies applying for this license will have to undergo strict requirements such as maintaining a registered office within the BVI and showing strong internal controls are in effect. Its transparent licensing program and friendly policies have made the BVI an ideal location for virtual asset service providers globally.
Advantages of obtaining BVI VASP license
Strong regulatory framework
- The BVI VASP license provides businesses engaged in the virtual asset business a firm legal ground. The regulatory endorsement enhances credibility and confidence with clients and stakeholders, signifying compliance with international standards. Firms that hold this license are able to enter into partnerships with mainstream financial institutions more readily, which typically demand evidence of regulatory compliance before they establish business relationships.
Tax neutrality
- Among the most important advantages of obtaining a BVI VASP license is the tax-neutral nature of the jurisdiction. The BVI does not have capital gains tax, inheritance tax, or corporate tax on profits earned outside of the territory. This pro-tax policy allows companies to reinvest additional profits into the firm, making it more suitable for new businesses and expanding businesses in the competitive digital asset sector.
Access to global markets
- Having a BVI VASP license allows companies to tap into global markets and gain a global customer base. As the demand for virtual asset services globally continues to rise, this license places companies in a good position to grow their operations and increase their market presence.
Protection from legal risks
- Licensing entails having businesses undertake robust AML, KYC, and CTF practices that not only minimize legal threats but also boost business efficiency. Adhering to such practices ensures companies can accurately gauge risks of transactions and defend themselves against future legal complaints.
Promotion of innovation
- The active regulation of the VASP industry by the BVI creates a culture that is innovative. Through ensuring protection against financial crime and fostering business development, the jurisdiction supports businesses to innovate new products and services while keeping regulatory requirements in check.
Simplified licensing procedure
- The BVI offers a simplified licensing process, which typically takes 8-10 weeks for significant responses from the Financial Services Commission. The rapid turnaround allows businesses to commence operations earlier, minimizing downtime and maximizing market opportunities.
Timeline for obtaining BVI VASP license
- Getting a BVI VASP license with Tetra Consultants is a thorough process that starts with the registration of a company in the British Virgin Islands, which takes around 1 week. After company registration, the second step is to open a corporate bank account, which typically takes about 4 weeks. After these basic components are established, Tetra Consultants helps prepare and submit the VASP license application to the Financial Services Commission (FSC).
- After the initial steps are done, Tetra Consultants will proceed to prepare and submit the VASP license application. The license takes about 5 months from the time of submission, assuming that all the requirements are fulfilled, and the documents are in order. Therefore, from company incorporation to ultimate approval of the BVI VASP license, the entire duration taken to obtain the BVI VASP license via Tetra Consultants is usually about 5-6 months.
Regulatory authority for BVI VASP license
- The governing authority for the BVI VASP license is the British Virgin Islands Financial Services Commission (FSC), the regulator of financial services in the jurisdiction. The work of the FSC was bolstered by the introduction of the Virtual Assets Service Providers Act, 2022 (VASP Act), into operation on February 1, 2023. The Act prescribes a rigorous framework for registration and regulation of Virtual Asset Service Providers (VASPs) carrying on business in or from the BVI.
- The Act requires all virtual asset service providers like cryptocurrency exchanges, custodian services, and third-party token issuance to be registered with the FSC prior to opening for business. The VASP Act also puts the Philippines on par with international anti-money laundering (AML) and counter-terrorism financing (CTF) standards, subjecting VASPs like customer due diligence, transaction monitoring, and compliance with the “travel rule” for cross-border transfers of virtual assets.
- Besides, the FSC has issued detailed guidelines to make sure VASPs minimize risks of money laundering, terrorist financing, and evasion of sanctions. Failure to comply with the regulations could spell heavy fines, including a fine of up to US$100,000 or imprisonment of the senior officers. Through this regulatory framework, the FSC anticipates promoting transparency and accountability while making sure innovation in the space for digital assets in the BVI.
Activities allowed under BVI VASP license
- The BVI VASP license allows companies to engage in various activities related to virtual assets, enhancing their business capabilities in the digital asset industry. Key activities supported under this license are:
Selling virtual assets in fiat currencies:
- This facilitates users to trade virtual money for fiat money, enabling one to dispose of his/her assets with ease.
Trading one virtual asset for another:
- Companies can provide services to allow customers to trade cryptocurrencies, meeting the different demands of investors and traders.
Transferring virtual assets on behalf of customers:
- VASPs can facilitate the transfer of virtual assets between customers in a safe and efficient manner.
Safekeeping or management of virtual assets:
- The license allows for the offering of custodial services whereby firms may safely hold and manage customers’ virtual assets.
Offering financial services in connection with the issue of virtual assets:
- It includes assisting sell or distribute tokens and other virtual assets on behalf of the issuers.
Operating kiosks for virtual asset transactions:
- VASPs can set up physical kiosks or ATMs that allow customers to buy or sell virtual assets with cash or debit/credit cards.
Activities excluded under BVI VASP license
- The BVI VASP license expels a number of specific activities from its regulatory framework to ensure that not every virtual asset-related service is licensed. The most important excluded activities are:
Software development and unhosted wallets:
- Only entities that create software alone, or offer unhosted wallets, which are wallets not hosted by a third party, are not VASPs according to the Act.
Creation or sale of software applications:
- Those companies that are engaged only in the development or sale of software applications or platforms for virtual assets are not within the scope of the VASP Act.
Ancillary services to virtual asset networks:
- Providing ancillary products or services for a virtual asset network, for example, the manufacture of hardware wallets, is outside the definition so long as the services do not involve the actively facilitation of virtual asset transactions on behalf of others.
Operation of virtual asset networks:
- Entities that manage a virtual asset network without doing business on customers’ behalf are also exempted from VASP licensing.
Closed-loop items:
- The delivery of closed-loop items that are non-transferable and cannot be utilized for investment or payment purposes is excluded.
Acceptance of virtual assets as payment:
- Merchants who receive virtual assets as payment only for goods or services do not need a VASP license.
Types of BVI VASP license
- British Virgin Islands (BVI) VASP license is divided into three types depending on the activities covered by the Virtual Assets Service Providers Act, 2022.
Custody services
- Such a license is mandatory for companies engaged in safekeeping or management of virtual assets for customers. Organizations that offer custodial services must prove to have strong security measures, sufficient share capital, and sound systems in place to secure client assets, as stipulated by the Financial Services Commission (FSC).
Exchange operations:
- Virtual asset exchange operators, in which users trade cryptocurrencies for other digital assets or fiat currencies, require this license. Such business has to meet trading rules so that the exchanges are transparent and protect consumers.
Other virtual asset services:
- This category encompasses all virtual asset-related services that do not strictly qualify as custody or exchange services. It encompasses new services like token issuance, marketplace operation, and other virtual asset-related financial services. Companies bringing new services to the market can apply for a temporary license under the Regulatory Sandbox regime, which gives them an 18-month window to experiment and perfect their services before being granted a final license.
Steps for obtaining BVI VASP license
Step 1: Initial consultation
- Tetra Consultants starts the process of applying for a BVI VASP license with an initial consultation in earnest. Through this stage, our experts sit down with you to discuss your business model in detail, your goals, and what virtual asset services you wish to provide.
- This conversation is paramount as it enables us to adapt our services to suit your distinct needs and confirm that we capture all the relevant regulatory matters. Through an evaluation of your objectives and the functioning model of your company, we can give specific recommendations that establish the basis of a successful licensing procedure.
Step 2: Company registration
- After we gain a proper understanding of your company, Tetra Consultants helps you incorporate your business in the British Virgin Islands. Our experts take care of all the matters of company registration, international trademark registration, document preparation and filing, like the Memorandum and Articles of Association.
- The entire process usually takes around 1 week. We guarantee compliance with domestic laws and regulations, ensuring easy registration. Forming your legal entity in the BVI is essential for conducting business within the jurisdiction’s regulatory regime.
Step 3: Preparation of documentation
- Having registered your company, Tetra Consultants assists in preparing all documents needed for the VASP license application. This involves drafting a detailed business plan that explains your operational strategy, market overview, and financial projections.
- We also aid in the creation of an effective risk assessment framework that identifies risks that may be connected to your services and describes the measures to mitigate them. Our staff also collates information regarding directors, shareholders, and major personnel to ensure that everything is accurate and in line with FSC requirements.
Step 4: Ensuring compliance with legal requirements
- Compliance is an important part of acquiring a BVI VASP license, and Tetra Consultants offers professional advice during this stage. We help appoint competent staff, including a compliance officer and auditor, who are in line with the residency and qualification requirements of the BVI Financial Services Commission (FSC).
- Our experts ensure that your company has effective anti-money laundering (AML) and Know Your Customer (KYC) policies in place. By building robust compliance mechanisms from the start, we assist in positioning your company for approval by regulators and long-term success.
Step 5: Final review and approval
- Once legal requirements are complied the authority will complete its review of the application in about 5 months from submission. Tetra Consultants is actively involved during this period to ensure that every response is timely and thorough.
- When your VASP license is approved, we will further assist you with ongoing requirements for compliance, such as notification of regulatory updates and helping you create effective internal policies.
Step 6: Corporate Bank Account opening
- For convenient financial operations, Tetra Consultants assists with corporate bank account opening with well-established banks in the BVI. It usually takes about 4 weeks to do so.
- We assist you in preparing the required documents and account opening requirements so that your company is provided with the required financial infrastructure for effective functioning. A corporate bank account is imperative for the transaction of virtual asset services and adherence to regulatory compliance.
Step 7: Ongoing compliance support
- Once you have achieved your BVI VASP license successfully, Tetra Consultants continues to be your support in ongoing compliance requirements. Our experts give you constant updates about regulatory changes that could affect your business and help conduct audits to ensure compliance with policies set.
- We also provide training services for your personnel to keep them updated on best practices in compliance. This ongoing assistance assists in protecting your company from possible risks while fostering a compliance culture within your organization.
Documents required for BVI VASP license
- Name and address of VASP qualified authorized representative.
- Form-A fit and proper application for each director.
- Form-A application for all senior officers.
- Human Resources Statement outlining the organizational structure and key personnel.
- A detailed record of the company’s shareholders.
- A visual representation of the company’s ownership and control.
- Details of any corporate ownership structure with beneficial owners.
- Business Plan.
- Risk assessment framework identifying potential risks associated with the business and strategies to mitigate them.
- Manual of compliance procedures and internal controls for ensuring adherence to regulatory requirements and internal policies.
- Outsourcing agreements including contracts with third-party service providers involved in business operations.
- Cybersecurity framework for protecting digital assets and data from cyber threats.
- Statement of technology Infrastructures.
- Business continuity plan.
- Clients handling framework.
- Custody and safekeeping of assets framework.
- Complaints handling procedures.
- Technology audits framework.
- Data protection and security framework.
- Name and of Auditor along with form B-1 application (unless already approved).
- Paid up capital information and including evidence of the same.
- Statement of capital held in other companies.
- Statement of assets and liabilities up to the end of the previous month for existing companies.
- Evidence of professional indemnity coverage.
Regulatory requirements for obtaining BVI VASP license
- There must have at least two directors, with at least one to be a resident of the British Virgin Islands (BVI). This requirement can be fulfilled through nominee director and shareholder services.
- There must be minimum of 2 shareholders without residency requirements.
- A qualified compliance officer must be appointed, who must be suitably skilled and fit.
- A senior manager with relevant experience and qualifications must be appointed, with residency in the BVI.
- The company must maintain a physical office address in the BVI for regulatory communications.
Cost of obtaining BVI VASP license
- The acquisition of a BVI VASP license entails several fees and charges that the applicants need to factor in to meet regulatory compliance. The most important among these are the license application fee, which is determined by the nature of the virtual asset service being offered. There are also registration fees to be paid to the BVI Financial Services Commission (FSC) as part of the licensing.
- Other major costs are the fees for hiring and retaining major staff, including directors, compliance officers, and auditors, who have to qualify and be resident in accordance with the FSC. Corporate bank account opening, which are used for business purposes, should also be included in the applicants’ budget. There are also administrative fees involved in preparing necessary documents, such as a business plan, risk assessment framework, compliance manuals, and cybersecurity frameworks.
- In addition, obtaining professional indemnity insurance is a requirement to safeguard against possible liabilities. The business also needs to have a physical office in the BVI, which involves rental or operational expenses. We at Tetra Consultants maintain absolute transparency throughout the process by giving a clear breakdown of all expenses. Our experts provide full assistance to guide clients through these costs effectively with complete regulatory compliance, allowing them to acquire their BVI VASP license successfully without any extra fees or time wastage.
How can Tetra Consultants help to obtain BVI VASP license?
- Tetra Consultants offers specialized guidance and professional business solutions to help clients gain a BVI VASP license effectively and efficiently. Our specialist team is well familiar with the regulatory environment in the British Virgin Islands, meaning that clients benefit from personalized assistance during the course of the license. Along with that we can also help clients with offshore financial licenses if required by the clients. For VASP license we first carry out an in-depth consultation to learn each client’s distinctive business model and goals so we can create personal solutions that work in line with their needs.
- We provide extensive assistance in areas like company registration, compliance solutions, and the preparation of necessary documentation required for the license application. Our seasoned experts assist the clients in overcoming the intricacies of regulatory obligations, such as anti-money laundering (AML) and Know Your Customer (KYC) procedures. We also aid in opening corporate bank accounts with major banks in the BVI.
- Apart from the initial setup, Tetra Consultants holds onto its clients with continuous compliance guidance, such as periodic updates of regulatory changes and advising on the creation of sound internal policies. Our dedication to transparency means clients get a transparent cost breakdown, making them plan efficiently. Through our vast experience and dedication to excellence, Tetra Consultants sets the stage for long-term success in the ever-changing virtual asset services sector.
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