The Amending Regulations’ definitions of a virtual asset, virtual asset service, and VASP are primarily derived from the FATF glossary.

Under the Amending Regulations:

• A “virtual asset” means a digital representation of value that can be digitally traded or transferred and can be used for payment or investment purposes but does not include: (a) digital representations of fiat currencies and other assets or matters specified by enactment or guidelines; or (b) a digital record of a credit against a financial institution of fiat currency, securities, or other financial assets that can be transferred digitally.
• A “virtual asset service” means the business of engaging, on behalf of another person, in any VASP activity or operation (as outlined in the definition of “VASP”) and includes: (a) hosting wallets or maintaining custody or control over another person’s virtual asset, wallet, or private key; (b) providing financial services relating to the issuance, offer or sale of a virtual asset; (c) providing kiosks (such as automatic teller machines, bitcoin teller machines, or vending machines) to facilitate virtual assets activities through electronic terminals to enable the owner or operator of the kiosk to actively facilitate the exchange of virtual assets for fiat currency or other virtual assets; or (d) engaging in any other activity that, by enactment or guidelines, constitutes the carrying on of the business of providing virtual asset service or issuing virtual assets or being involved in virtual asset activity.
• A “VASP” means a virtual asset service provider who provides, as a business, one or more of the following activities or operations for or on behalf of another person: (a) exchange between virtual assets and fiat currencies; (b) exchange between one or more forms of virtual assets; (c) transfer of virtual assets, where the transfer relates to conducting a transaction on behalf of another person that moves a virtual asset from one virtual asset address or account to another; (d) safekeeping or administration of virtual assets or instruments enabling control over virtual assets; (e) participation in, and provision of, financial services related to an issuer’s offer or sale of a virtual asset; (f) perform such other activity or operation as may be specified by enactment.

Suppose you are in the BVI or operating a BVI entity in the virtual asset space. In that case, we recommend you seek advice from BVI legal counsel with demonstrable expertise and experience in the virtual assets sector to determine whether you are operating as a VASP before 1 December 2022.

If you think you are likely to be a VASP, you should prepare to comply with the BVI AML Regime.