The Financial Services Commission, regulating crypto activities in the British Virgin Islands, has set numerous requirements for getting a license.

A crypto project can only apply for the BVI VASP license if it has appointed an Authorized Representative, which should be an individual or a company in the British Virgin Islands, which has received the approval of the FSC to act as such. The Authorized Representative will be the contact point between the project and the regulator.

Corporate documentation such as a detailed business plan and a chart detailing the ownership structure of the company.

There is no minimal share capital but the FSC expects its applicants to present an “adequate level of paid-up capitalization for the nature of their operations”.

The company board must demonstrate its skills, knowledge, and expertise. A company can be appointed as a director. Foreign investors are permitted to establish and own crypto companies in the BVI, subject to compliance with local regulations. An independent auditor approved by the FSC must be appointed for the licensed crypto company.

To successfully conduct the application, the crypto company must prepare policies, procedures, and systems such as:

• Technological audits, “such as, but not limited to smart contract defects, the underlying protocol’s ability to scale, interoperability and code integrity/security”;

• Risk management strategies, policies, and overall framework;

• Consumer protection provision;

• Policies and procedures regarding transactions with identified third parties & outsourcing agreements;

• Detailed plan for custody and safekeeping of assets;

• Virtual assets custody services must meet specific regulatory requirements;

• Business continuity plan and business cessation plan, with the scope of protecting customers;

• Implementation of the virtual assets “transfer rules”;

• Detailed audit plan, including the profile of the auditor;

• Manuals of compliance, procedures, and internal controls;

• Data protection & cybersecurity framework;

• Statement of Technological Infrastructures (description of the software);

• Appoint a qualified individual as a Money Laundering Reporting Officer (MLRO).

Applicants should note that providing investment advice related to virtual assets may require additional compliance under the Investment Business Act, as certain activities may fall under its regulatory scope.

The FSC may also ask the applicant to contract with professional indemnity insurance.