Industry Circular 43 of 2025 - The FSC Publishes Virtual Assets And VASP Regulation FAQs

THE FSC PUBLISHES VIRTUAL ASSETS AND VASP REGULATION FAQs

Road Town, Tortola - The BVI Financial Services Commission (the Commission) today published Frequently Asked Questions (FAQs) on its website regarding virtual assets and the regulation of Virtual Assets Services Providers (VASP). The FAQs document, which is titled ‘Understanding Virtual Assets and VASP Regulation’, is expected to assist industry participants in understanding and complying with the regulatory requirements that apply to virtual asset activities conducted in or from within the Virgin Islands.

The FAQs complement the existing Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) guidance, and clarify areas highlighted in the Territory’s national risk assessments, particularly, the increasing exposure to Money Laundering, Terrorist Financing, and Proliferation Financing (ML/ TF/ PF) risks associated with virtual assets and related technologies(?). The FAQs define virtual assets and provide practical guidance and information on:

• What constitutes a VASP;
• Activities that will be considered ‘virtual asset services’;
• Registration requirements under the VASP Act, 2022;
• Key compliance obligations, including AML/CFT expectations;
• The FSC’s regulatory and supervisory responsibilities;
• Penalties for carrying out virtual asset services without registration; and,
• Access to relevant legislation and supporting guidance.

The FAQs also highlight the importance of maintaining strong internal systems and controls to mitigate risks associated with virtual asset activities, including customer due diligence, record-keeping, audits, and ongoing monitoring.

The Commission encourages all supervised entities and industry practitioners to review the FAQs and to ensure full compliance with the requirements of the VASP Act and related AML/CFT/CPF legislation, in effort to help safeguard the integrity of the Territory’s financial system.

The FAQs are available on the Commission’s website, here.

Queries related to this Circular should be directed to [email protected]