Introduction
In July 2020, the financial regulatory authority of BVI issued guidance on virtual assets. This document requires that virtual assets and related investment activities must undergo an asset test before deciding whether a license is needed under the Securities and Investment Business Act 2010 (as amended, SIBA).
The guidance requires the asset test to be conducted in the following two categories:
1. Regarding the issuance of the product itself
If virtual assets are used solely for payment, such as tokens issued by a seller for purchasing their products, there is no need to apply for a financial license and no regulation is required.
If virtual assets are used to provide certain rights, including equity and debt, and not just as a medium of payment, compliance with the SIBA Act is required. This act covers virtual assets including virtual currency funds, ICO issuance, and related virtual currency derivatives.
2. Related virtual asset investment activities
Investment activities regulated by the SIBA Act mainly include:
Conducting investment transactions
Assisting clients in executing investment transactions
Investment management of financial products
Providing investment advice to clients
Providing custodial services to clients, including electronic wallet services, and services for storing, holding, or maintaining virtual assets for clients.
Providing regulatory and administrative services related to investments.
Operating a virtual asset investment exchange
***If you intend to provide related virtual financial asset services in BVI, the BVI regulatory authority recommends that applicants communicate with them in advance to avoid unnecessary application work.
License Application Requirements
Business plan: Including internal organizational structure, company board structure, financial budget analysis, internal management controls, etc.
Company anti-money laundering charter, risk control manual, client account opening manual, etc.
Personal application form information for company directors, senior management, compliance officers, and other licensed individuals.
Proof of local office address.
Application fee: $1,000.
Minimum registered capital: $100,000.
Application time is approximately 6 months.
License Application Process
Oushin assists applicants in scheduling interviews with the financial regulatory authority before applying and communicates the application plan on behalf of the client. The regulatory authority will provide relevant advice based on the applicant's conditions;
Prepare documentation, fill out the company registration application form, including conducting background checks on clients;
Register a company in the British Virgin Islands with at least 2 directors. One must be a local director.
Company registration documents can be submitted for company registration application after being signed by the company directors.
Open a company bank account and a client fund custody account. The company can proceed with the license application simultaneously after establishment.
Oushin assists clients in signing contracts with relevant financial partners and helps clients review service contracts, including auditors, accountants, lawyers, etc.
Oushin helps clients recruit qualified licensed individuals.
Prepare the complete set of documents for the license application and submit them to the regulatory authority.
After the application is submitted, Oushin will help clients respond to relevant inquiries from the regulatory authority and represent clients in interviews.
After the license application is approved, assist clients in registering with the regulatory authority.
That's all for today's sharing. Feel free to leave comments and exchange ideas in the comment section.
