Securing a BVI VASP License for Your Crypto Company
Are you aspiring to be the next major cryptocurrency tycoon? Now is the time, as the virtual asset market is about to enter the $10 trillion economy! But having business aspirations alone is not enough; you have to decide on two major elements: a) a suitable jurisdiction and b) securing a VASP license.
Regarding jurisdiction, one of the ideal choices available for doing crypto business and VASP licensing is the British Virgin Islands (BVI). Obtaining a license can be hectic most times, but thanks to the business-supportive framework in BVI, securing one has become easier than ever.
In this article, let us uncover some of the major questions:
- What is a BVI VASP license?
- What benefits can your company enjoy?
- Does your business fall under the VASP activities?
- How to obtain a crypto or VASP license in BVI?
- And what are the licensing and documentation requirements?
What is a VASP License in the BVI?
Before discussing the VASP license, let us first understand what a Virtual Assets Service Provider (VASP) is and know if your business falls under this category.
A VASP is an entity or a business that allows users to trade, exchange and secure virtual assets, including cryptocurrencies. An entity seeking to provide virtual asset services must secure a license from the Financial Services Commission (FSC) before conducting operations. Operating without a license can expose the company to huge fines and imprisonment for up to five years.
Since a crypto business also falls under the VASP category, obtaining a license becomes a must with proper compliance with the KYC and AML standards.
Benefits of obtaining a BVI VASP License for a Crypto Company
Securing a BVI crypto license can offer numerous financial and operational benefits to companies diving into the crypto market. Some of the significant ones are as follows:
Attractive Taxation
Since the BVI is a tax-neutral jurisdiction, licensed VASPs are not subject to corporate tax on income earned outside the BVI. This allows them to conduct offshore operations without stressing over tax obligations.
Increased Credibility
A BVI VASP license gives your crypto business the official approval that banks and partners need before initiating collaboration. This strengthens the credibility factor of your venture and elevates the business growth.
Fast Company Formation
Company registration in BVI is fast and the FSC targets to provide faster feedback on license applications. This makes it an ideal jurisdiction for faster business setups and VASP license approvals.
Robust Compliance Framework
The compliance obligations are properly laid down for the BVI crypto companies. The strong framework makes it clear to companies what they must comply with, resulting in fewer operational issues and full due diligence.
Structural Requirements for Obtaining a VASP License in BVI
To secure the BVI crypto license, your business must first meet the structural requirements listed by the concerned authorities. Below are the important structural requirements:
| Structural Requirements | Description |
|---|---|
| Incorporation of a BVI company | The company must be legally incorporated in BVI to secure a VASP license |
| Director | A minimum of two directors is required and they must satisfy Schedule 1A of the FSC regulatory code |
| Authorized Representative | Mandatory appointment of an authorized representative for conducting VASP activities |
| Auditor | Mandatory appointment of an auditor that is officially approved by the FSC |
| Money Laundering Reporting Officer (MLRO) | A qualified MLRO must be appointed to oversee the VASP’s AML activities and report suspicious activities to the FIA. |
| A written manual | A written manual including the company’s AML objectives and additional compliance steps |
Activities that can be Conducted with a BVI VASP License
The following activities are permitted if you have a BVI VASP license:
| Activities | Description |
|---|---|
| Virtual Assets Service |
|
| Virtual Assets Custody Service |
|
| Virtual Assets Exchange |
|
Activities that do not Require a BVI VASP License
Below are the activities that do not require VASP registration and licensing in BVI:
- Virtual Asset Network Operators
- Hardware wallet manufacturers
- Subsidiary providers of virtual asset services
Steps to Successfully Obtain a BVI VASP License:
Below are the steps required to successfully obtain a BVI VASP license for your crypto company:
STEP 1: Check if your BVI company falls under the VASP category
STEP 2: Be clear about the VASP regulations and FSC norms
STEP 3: Get fully equipped with the technological infrastructure
STEP 4: Appoint the proposed company officials and service providers
STEP 5: Prepare the necessary documents
STEP 6: Submit the application form to the FSC department
STEP 7: Upon successful review, your business will be granted a VASP license in BVI.
Documents Required to Apply for a BVI VASP License
You must be handy with the following documents to obtain a VASP or crypto license for your company:
- Valid ID proof of the proposed directors and officials
- Valid shareholder details
- Details of individuals with controlling interests in the VASP
- A detailed business plan
- Company’s office address proof
- Credentials and consent of the auditor
- Details of the authorized representatives
- A compliance manual
Obtaining a BVI VASP license allows you to operate a blooming crypto venture within a globally recognized and credible framework. However, the process demands careful preparation and a thorough understanding of what FSC expects at every stage. Our team simplifies that process entirely. From crypto offshore company registration to securing a VASP license, our team handles every step with full compliance. Contact Gryffin Capitalist today and let us help you fulfill all your licensing obligations!
Frequently Asked Questions (FAQs)
Who needs a BVI VASP license?
Any business or entity that provides virtual asset services, custody services or operates a virtual asset exchange in or from the BVI must be registered with the FSC before initiating operations.
When did the BVI VASP regulatory framework come into force?
The Virtual Assets Service Providers Act 2022 came into force on 1 February 2023, making VASP registration mandatory for all qualifying virtual asset businesses operating in or from the BVI.
What happens if a crypto company operates without a VASP license in BVI?
It is a criminal offense if a BVI crypto company operates without a license. The directors and senior officers may face fines of up to US$100,000 and even imprisonment for five years.
What happens if a crypto company operates without a VASP license in BVI?
It is a criminal offense if a BVI crypto company operates without a license. The directors and senior officers may face fines of up to US$100,000 and even imprisonment for five years.
Is there a minimum capital requirement for companies issuing a VASP license in BVI?
No. However, the FSC might request proof of sufficient capital to cover six to twelve months of the company's projected operating expenses.
About Author
Gouri Gogoi has been working with us for the past four years and has contributed a lot with her content curation skills. With a long-standing passion to deliver the best, she makes sure that every piece of content uploaded is trustworthy and easily understandable by our readers. Her content speaks volumes about her corporate expertise and the dedication she has put forth till date is forever commendable. Apart from her professional expertise, Gouri loves to sing and volunteer in her spare time.
