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Open a Crypto Company in BVI

Open a Crypto Company in BVI

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. 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  
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

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.

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.

The shareholding structure requirements are permissive in the sense that only one investor to 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. 

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.

We invite you to watch a short video about crypto company creation in the BVI:

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.

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 will 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.

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.

A crypto company that has worked on developing a new digital currency, and is preparing to launch an initial coin offering, can do so in BVI without necessarily falling under the scope of the Securities and Investment Business Act. Ordinarily, under this act, carrying out any type of investment business is prohibited without a proper license from the Financial Services Commission.

A case-by-case approach is advisable in the case of token or crypto asset dealings in BVI, as some of these assets may be defined as investments, according to the manner in which their value of return relates to the performance of another asset of the business. When this occurs, licensing will commonly be required, and it is for this purpose that we advise investors to carefully consider if their forms of tokens or crypto assets can be considered a form or derivative.

If you are interested in regulatory matters, our partner lawyers in BVI can help answer any questions about the regulations applicable to entities that provide non-banking legal services. We can also advise business owners who have already incorporated their business and need to hire software developers or programmers in BVI for their crypto company. While remote work is an increasingly popular option, our lawyers will give you details on the employment law issues you need to take into account, for a locally registered or an offshore company in BVI.

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. If you are interested in starting a business in another country, such as Bahrain, we can put you in touch with our local partners.

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. 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.