Guide To BVI Virtual Assets Service Providers Act, 2022

In December 2022, the British Virgin Islands (BVI) enacted the Virtual Assets Service Providers Act, 2022 (the Act) which came into force on February 1, 2023. The Act introduces a formal supervisory framework for virtual assets service providers.

The Act defines key terms relevant to this fintech space, prescribes requirements for registration under the Act, and details ongoing obligations, among other matters.

Key Definition - Virtual Asset

Under the Act, a virtual asset is defined as a digital representation of value that can be digitally traded or transferred, and can be used for payment or investment purposes, but does not include (a) digital representations of fiat currencies and other assets or matters specified in guidelines; or (b) a digital record of a credit against a financial institution of fiat currency, securities or other financial assets that can be transferred digitally.