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Open a Crypto Company in BVI

Open a Crypto Company in BVI

An increasing number of companies are interested in digital innovation, as well as the use of digital assets. These cryptocurrencies can be used both for investment and for transactional purposes.

Opening a crypto company in BVI can be a good choice for tech enthusiast entrepreneurs, given the locations’ openness towards foreign investment, as well as these types of digital assets.

Our BVI company formation agents discuss the need for a BVI crypto license and answer a number of other questions below.

If you need assistance for incorporation, as well as for 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.

 Quick Facts  
Cryptocurrency seen as legal tender (Yes/No)

No

Local regulatory agency

The British Virgin Islands Financial Services Commission

Special licenses for those who open a cryptocurrency company in BVI

No
Special licenses for crypto exchanges
in BVI

No

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

No

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

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.

Only one investor can open a crypto company in BVI and he does not need to reside in the Islands.

For company formation, entrepreneurs will need to:

  1. Choose the business form: most commonly this can be the IBC or a limited company;
  2. Choose a business name: the registered name can be the same as the trade name, however, the registered one needs to be unique;
  3. Register the business: complete the registration process with the BVI Registry of Corporate Affairs;
  4. 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. 

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. As you can see below, the regulations are simple ones even when discussing a BVI crypto license.

However, 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.

Do you need a BVI crypto license?

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.

Although recognized in this manner, there is no present need to apply for a BVI crypto license.

Crypto statistics

The popularity of cryptocurrencies is perhaps best understood when looking at the evolution of Bitcoin, which remains the most popular digital currency. Other data shows the following trends in 2021:

  • – in December 2021 there were 295 million crypto owners in the world;
  • – the total global number of Bitcoin owners was estimated at 176 million and the total number of Ethereum owners was estimated at 23 million worldwide;
  • – the overall crypto adoption rate in the second half of 2021 was 37.5%, 15% higher than in the same analyzed period in 2020.

If you want to open a digital currency company, the British Virgin Islands can be a good choice, given the fact that there is no regulation via a BVI crypto license.

Contact us if you want to open a crypto company in BVI.

Our team can help you throughout the incorporation process, as well as with other legal services such as those suited for those investors interested in acquiring residency and citizenship