BVI VASP approved!
Harneys BVI Regulatory team advises on VASP approved in the first tranche of Financial Services Commission (the Commission) registrations under the Virtual Assets Service Providers Act (the VASPA).
Background
The British Virgin Islands (the BVI) enacted the VASPA on 1 February 2023. The VASPA creates the legal framework for the registration and supervision of all virtual assets service providers (VASPs) operating in and from within the BVI. After 1 February 2023, any VASP not yet conducting activity in and from within the BVI is prohibited from doing so without first obtaining a licence from the Commission. However, the VASPA also incorporated special consideration for persons who were already conducting virtual assets service in and from within the BVI before 1 February 2023. These existing BVI VASPs were grandfathered in under the VASPA and were granted a six-month transition period, which ended on 31 July 2023.
In order for existing VASPs to continue providing a virtual asset service, a completed application had to be submitted to the Commission for registration as a VASP by 31st July 2023. It is our understanding that since the end of the transition period on 31 July 2023, the Commission has received in excess of eighty applications and, on 28 March 2024, approved its first two VASPs with more to follow. Harneys Regulatory team acted as trusted advisor on one of these successful applications.
VASP approved
The successful applicant, Portofino Technologies Global, is one of the leading cryptocurrency market makers. Portofino also operates an "over the counter" trading business for institutional clients. Through its OTC business, Portofino provides its clients with the most competitive prices and deep liquidity across hundreds of tokens. Portofino has been approved to provide virtual asset services, including carrying out the activities of the exchange between virtual assets and fiat currencies, and exchange between one or more forms of virtual assets. Portofino fits nicely within the category of VASPs the BVI is seeking to encourage with the new framework, as Portofino’s team has extensive experience in regulated financial services firms and in working within robust compliance and risk management frameworks.
The Harneys team, spearheaded by Head of BVI Regulatory, Ayana Hull and supported by Associate Charlotte Allery, led the application which secured approval by the Commission this month.
Ayana commented: “The Harneys BVI Regulatory team is delighted to be in the first tranche of FSC approvals. Harneys acted in respect of 20 per cent of the applications submitted. I know the team members worked very hard to put solid applications together. The clients were also very knowledgeable and well-versed in the space. They were also very co-operative and prompt in submitting information based on follow-up queries by the Commission. We are therefore very pleased with these results and so are our clients”.
Charlotte added: “It has been great to be involved with applications under the BVI’s new VASPA and to support our clients with obtaining approval under the new regime. We take this opportunity to congratulate Portofino’s hardworking team, and we wish them the very best with their operations as a BVI VASP”.
Do you need help with a VASP application?
We are happy to assist. We have a very deep, experienced and knowledgeable regulatory team who can guide you through the process. Our approach is thorough yet simple and helpful and the process yields the outcomes we expect.
We are happy to provide you with our complimentary consultation kit, which includes:
- Harneys Practical Guide to the VASPA
- Harneys Proposal and Fee Quote Document
- Harneys VASP Assessment Tool
If you need our assistance, please contact any of the contacts listed or your usual Harneys contacts.
