BVI To Introduce The Virtual Assets Service Providers Act

The British Virgin Islands ("BVI") is proposing to introduce virtual assets service provider ("VASP") legislation and has recently circulated a draft bill in the form of the Virtual Assets Service Providers Act, 2022 (the "VASP Act") for industry consultation. Once enacted, this will introduce a new legal framework and registration regime for any BVI entity caught within scope of the VASP Act.

The VASP Act is being introduced to implement certain recommendations of the Financial Action Task Force and to demonstrate the BVI's continued commitment and responsiveness in meeting rapidly-changing international standards and best industry practice as they relate to cryptocurrencies and digital assets businesses. Whilst no clear enactment date has yet been fixed, it is understood that this will likely come into force before the end of 2022 or in early 2023. The VASP Act will include a transitional grace period of 6 months for an existing VASP to get duly registered by