On 9 September 2022, the BVI Financial Services Commission (FSC) issued a draft of the BVI’s proposed new legislative framework governing Virtual Assets Service Providers (VASPs). The proposal is in line with the requirements of the Financial Action Task Force (FATF) on VASP regulation globally.

The draft Virtual Assets Service Providers Act, 2022 (VASPA), makes provision for the registration and supervision of VASPs. In general terms, VASPA regulates transactions involving virtual assets, the safekeeping and control of virtual assets or instruments, and the operation of virtual assets investment exchanges. More specifically the proposed legislation:

• defines those activities relating to virtual assets that trigger registration,
• prescribes requirements for the registration and approval of an entity to provide VASP services,
• details the ongoing requirements and obligations of VAPs, mandatory functionaries and other service providers for VASPs, and
• assigns specific powers to the FSC in relation to VASPs, and specifies the penalties for offences committed.

Call for feedback from the industry.

In its press release, the FSC requests feedback and comments from all stakeholders on the proposed new supervisory regime. The window for the public to provide feedback in the consultation process will close on 23 September 2022.

We encourage all BVI based entities, firms, and institutions active in the VASP industry, to take this opportunity to review the draft VASPA and provide their comments.

Comments/questions on the draft VASPA can be submitted to us at Harneys at BVIVASPQueries@harneys.com for onward submission to the FSC or by completing and submitting comments directly to consultation@bvifsc.vg using the FSC’s Consultation Comments Template.

FSC’s press release can be found here.

The draft VASPA can be found here.