BVI Virtual Assets Service Providers Act, 2022
BVI Virtual Assets Service Providers Act, 2022
The Virtual Assets Service Providers Act, 2022 (the “VASP Act”) came into force on 1 February 2023. The VASP Act and relevant guidance (refer to the attached) introduce a new regulatory framework for virtual assets service providers carrying out certain business activities in or from within the BVI.
The VASP Act regulates virtual asset service providers such as providing services of virtual asset (i.e. Crypto/ Tokens) exchange, brokerage as well as custodian and requires that virtual asset service providers be registered with the BVI Financial Services Commission (the “FSC”)
New entities must register with the FSC before commencing any VASP activities.
Entities already operational when the VASP Act came into force will have until 31 July 2023 to submit an application to the FSC, or to cease its VASP related activities.
After this date, the VASP relevant guidance confirms that all virtual asset service providers that have not submitted applications for registration will be considered to be conducting unauthorised business and subjected to the full enforcement mechanisms of the FSC – a fine of up to US$100,000 and/or 5 years imprisonment (for any director, partner or senior officer who knowingly authorised, permitted or acquiesced in the commission of the offence).
KEYWAY is able to assist with the VASP application in the BVI, please liaise with your usual KEYWAY contact for further assistance.
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