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The British Virgin Islands (BVI) is hoping to lure crypto investment to the tiny Caribbean island as it sets its sights on becoming a hub for crypto activities, with a regulatory framework being developed to tap into the growing market.
In a keynote address at the BVI Arbitration Week 2024 on March 12, Minister for Financial Services, Labour, and Trade, Lorna Smith announced there have been significant milestones in the evolution of the area expanding into digital assets.
As reported by BVI News, she described the British Overseas Territory as being “poised to shape the future of digital asset innovation and regulation on the global stage.”
A few days later, on March 15, a statement was published by the Government of the Virgin Islands, written by Minister Lorna Smith. She says: “We, in the BVI, are conscious that the emergence of the digital assets business sector signifies a revolutionary shift in the financial world, one in which we aim to play a critical role…”
She later goes on to say the “design and effectiveness of the regulatory framework will be critical to our success.”
When digital asset funds were first making it to the market in 2015, the BVI Investment Fund Association worked closely with the Financial Services Commission to explore opportunities.
Lorna Smith describes the area as having “emerged as an epicenter for digital assets…”
The BVI Government aims to create an ecosystem filled with innovative and trusted providers with effective regulation.
How will the BVI attract Crypto investment?
The British Virgin Islands created and introduced the ‘Virtual Assets Service Providers Act’ in 2022 which became active in February of 2023.
This focuses on the types of virtual asset activities requiring registration, the criteria, and the duties and responsibilities of those who have registered. Authority was granted to the BVI Financial Services Commission and penalties for violations under the Act were established too.
In the published statement, Smith provides an update: “I am delighted to say that we have received over 60 applications for licenses under VASP so far, and that we expect 2024 to be a critical year in the formation of this world-leading digital ecosystem within the BVI.
“For all these reasons, I believe that the BVI is perfectly situated to become a global hub for digital assets. The work we have done with the sector and the creation of the VASP framework represent a milestone in our journey to becoming a trusted and innovative digital assets ecosystem.”
Featured Image: Photo by Phil Hauser on Unsplash
