A crypto company in BVI is a business involved in providing software solutions for accessing, storing, or trading in digital currencies or, in some cases, involved in the actual development of new digital currencies. It is subject to obtaining a crypto license in BVI under the Virtual Assets Services Providers Act, 2022.
An increasing number of companies are interested in digital innovation, as well as the use of digital assets. Cryptocurrencies can be used both for investment and for transactional purposes and the market is one that will continue to offer ample opportunities for business.
| Quick Facts | |
|---|---|
| Are virtual assets regulated in the BVI? (Yes/No) | Yes |
|
Local regulatory agency |
The British Virgin Islands Financial Services Commission |
|
Special licenses for those who open a cryptocurrency company in BVI |
The Virtual Assets Service Providers License |
| Licensed crypto activities |
The provision of virtual assets custody services Operating a virtual assets exchange |
| Anti-money laundering rules |
Generally applicable The FATCA provisions can be relevant for ICOs |
| Special requirements for investors who open a cryptocurrency company in BVI |
Observe the Virtual Assets Service Providers Law |
| Residency requirements for investors |
No |
| Types of companies used by those who open a cryptocurrency company in BVI |
The International Business Company (IBC) for conducting business outside of BVI (offshore company) The limited and unlimited company for doing business in the British Virgin Islands |
| Minimum capital for a cryptocurency company in BVI |
Not applicable |
| Minimum number of shareholders | 1 |
| Minimum number of directors |
1 |
| Business license |
Registered with the Register of International Business Companies |
| Mandatory requirements for the cryptocurrency company |
Registered office located in BVI and a registered agent in BVI |
| Cryptocurrency company taxation |
BVI is a tax-neutral jurisdiction |
| Reasons to open a cryptocurrency company in BVI | No corporate taxes and no conditions on the nationality of investors, no residency requirements. Presently, no mandatory regulations for virtual assets trading and activities. |
| Registered agent role for a crypto company | An essential role for the incorporation of the business, as well as for ensuring compliance with the ongoing requirements in BVI. |
| Registered agent requirements | Must be a regulated and licensed provider |
| Registered agent change in BVI | If needed, the crypto company’s registered agent can be changed during the course of business. Ask our team if you wish to make any changes. |
| Registered office requirements | It cannot be a post office box in BVI |
| Requirements for corporate documents | A BVI crypto company must maintain essential documents at its registered office, or at its registered agent’s office. |
| Filing requirements | Companies are expected to comply with the annual return filing requirements. Our team can assist crypto companies. |
| Filing requirements exemptions | Listed companies, companies in liquidation. Other exemptions can apply and companies are subject to certain conditions. |
| Non-compliance for filing | Crypto companies that fail to follow the filing requirements can be subject to financial penalties. |
| Crypto company name | The founders can use the desired name for their business, if available for registration. |
| Company name ending | As per the type of company (limited companies are subject to specific endings or abbreviations to their name). |
| Restricted words for crypto company names | Crypto companies cannot choose a name that will suggest connections with the Government or with financial services businesses if not properly registered for this purpose. |
| Crypto company name change | Possible, if the new name meets the requirements. |
| When to contact us for crypto company incorporation in BVI | As soon as investors enter the pre-registration steps. |
| Reasons to work with us for company formation | Our dedicated team can guide investors throughout the mandatory procedures to endure a straightforward registration for their crypto company. |
| Company formation services in BVI for other types of companies | As needed for companies that will activate in other industries of interest (financial services, tourism, restaurants, etc.). |
Opening a crypto company in BVI can be a good choice for tech enthusiast entrepreneurs, given the location’s openness towards foreign investment, as well as to these types of digital assets.
Our BVI company formation agents assist international investors who wish to open a company that activates in this field. In this article, we discuss the need for a BVI crypto license and answer a number of other questions below.
If you need assistance with incorporation, as well as opening a bank account in BVI, our team is ready to assist you. If you need company formation services in another country, our team can put you in contact with their partners.
Table of Contents
Can foreign investors open a crypto company in BVI?
Yes. Full foreign ownership is permitted in the British Virgin Islands and there are no residency requirements for foreign investors.
Entrepreneurs will, however, need to observe the provisions of the Virtual Assets Service Providers (VASP) Act and register with the local authorities to obtain a VASP license in BVI.
The shareholding structure requirements are permissive in the sense that only one investor can open a crypto company in BVI and he does not need to reside in the Islands.
For company formation in BVI, entrepreneurs will need to:
- Choose the business form: most commonly this can be the IBC or a limited company;
- Choose a business name: the registered name can be the same as the trade name, however, the registered one needs to be unique;
- Register the business: complete the registration process with the BVI Registry of Corporate Affairs;
- Start trading: once the business is set up, the company can begin its activities related to digital currencies.
Our company formation agents can give you more details about each of these steps. In case you need company incorporation services in another country, for example in Ireland, we recommend our partners – irelandcompanyformation.com.
Our lawyers in BVI offer legal guidance and assistance to investors who are interested in opening a crypto company. We provide complete assistance to new companies, from the initial pre-registration phase during which we assist with the preparation of the documents, followed by the registration of the business. We also assist investors with despite resolution, contract law issues, employment, and more.
The crypto license in BVI
The Financial Services Commission has recognized Bitcoin and Ethereum-focused funds. This means that initial coin offerings and initial token offerings are also practiced in this jurisdiction, with a note that the fundraising for these can be subject to regulation.
The Financial Services Commission introduced the Virtual Assets Service Providers Act which came into force in February 2023. This helped create a legal framework for the issuance of a crypto license in BVI and provided important guidelines for VASP companies.
Virtual asset companies are those that offer digital asset-related services for or on behalf of another party. This can include several types of activities and, for the purpose of the Act, the VASP license in BVI is required for those who:
- Operate virtual asset exchanges;
- Provide virtual asset custody services;
- Engage in business meant to offer other virtual asset-related services.
The crypto license in BVI is granted after a careful analysis of a mandatory set of documents. The applicant will submit all the needed documents and the FSC will process these within approximately 6 weeks. Alternatively, the maximum processing time can be 6 months.
A successful application, as well as a streamlined process that results in a shorter processing time, is dependent on the accuracy of the submitted documents. Our team highlights some of the most important details included in an application for a VASP license in BVI:
- Corporate governance: information about the Board of Directors who should have relevant skills for this business sector and VASP operations;
- Capital: investors who open a company in BVI that will offer VASP services must have adequate paid-up capital;
- Technology issues: the company is expected to have adequate technological infrastructure;
- Risk management: a VASP business must be able to manage more than one type of business risk; included here are legal, operational, and compliance risks;
- Consumer protection: a company that manages the virtual assets of its clients must demonstrate that it offers fair, accurate, and clear services, and it must not mislead its customers;
- Data protection and cybersecurity: such a company is expected to have an adequate cybersecurity framework and good data protection protocols in place.
Other information, as well as a set of mandatory statements by the applicants, must be provided with the VASP license submission with the FSC.
Is BVI a good location to open a crypto company?
Yes, the British Virgin Islands are a good location to base a company involved in blockchain and cryptocurrency.
Investors who open a crypto company in BVI benefit from a simple incorporation process and straightforward requirements.
In addition to the requirements for BVI company formation, investors will also need to comply with the registration and supervision rules once they obtain the crypto license in BVI. The main requirements imposed by the Financial Services Commission for this purpose can be detailed by our team specializing in company incorporation in BVI.
The most important advantage for investors is that businesses incorporated in BVI are not subject to corporate tax, capital gains tax, or wealth tax.
This particular trait makes the British Virgin Islands a suitable location to open a crypto company, as well as other types of businesses. In case you are interested in starting a crypto business in another jurisdiction, for example in Hungary, we recommend our partners – CompanyIncorporationHungary.com.
We invite you to watch a short video about crypto company creation in the BVI:
Crypto business ideas
Are you an investor looking to open a crypto company in BVI? As previously mentioned, the blockchain and cryptocurrency sector is one that shows promising potential. It is also subject to rapid development and a certain degree of volatility. Entrepreneurs can explore various business ideas, focused on delivering solutions for managing, storing, and trading existing cryptocurrencies such as Bitcoin or Ethereum, if not involving their company in the development of a new form of digital currency.
Our team briefly lists several popular cryptocurrency business ideas for entrepreneurs who are interested in opening a company in the British Virgin Islands that will activate in this sector:
- Digital payment gateway: as payments via digital currencies expand, the need to use a payment gateway will also increase; the crypto company can provide the needed software solutions to enable companies to accept payments, or allow clients to make payments via these digital currencies;
- Crypto exchange: as the name suggests, this is the platform that allows users to buy and sell digital currencies;
- Crypto ATM: opening a network of conveniently located ATMs that allow individuals to buy and sell Bitcoin and other popular cryptocurrencies;
- Consultancy: your crypto BVI company can simply provide clients with the consultancy they need to start investing in and trading with cryptocurrencies.
Please keep in mind that the list above is not a complete one and it highlights only part of the business opportunities investors can choose to explore when opening a crypto company in the British Virgin Islands.
Crypto statistics
The number of cryptocurrencies reached over 9,000 in 2023. Other statistical data reveal that:
- It is estimated that the worldwide revenue in the crypto market will reach US$56.7bn in 2024;
- It is expected that the total number of crypto users will reach more than 860 million by 2025;
- The user penetration rate was estimated at 11.05 in 2024;
- The United States is through to deliver the largest revenue in this sector.
Our team can help you open a crypto company, throughout the incorporation process, as well as with other legal services such as those suited for investors interested in acquiring residency and citizenship. As previously mentioned, there is no need for the foreign national who opens a crypto company to reside in BVI, however, should this become a necessity or a preference, our team will guide you through the needed steps to become a temporary, then permanent resident.
Contact us if you want to open a crypto company in BVI. If you are interested in starting a business in another country, such as Bahrain, we can put you in touch with our local partners.