The British Virgin Islands (BVI) is a popular jurisdiction of choice for cryptocurrency businesses. It has legalized crypto-related activity since 2023. BVI has set various laws and regulations to develop the crypto ecosystem. Its legislation aligns with global standards set by the Financial Action Task Force (FATF) to provide clarity and oversight for crypto trading. It aims to evolve consumer protection since the crypto sector is rapidly growing.
Everything you need to know about crypto milestones:
Aspect | Details |
Primary law | VASP Act 2022 |
VASP into force | February 1, 2023 |
Regulator | BVI Financial Services Commission (FSC) |
Registration required | For all VASPs |
AML/CFT Compliance | Mandatory, including the appointment of an AML officer |
Reporting | Regular financial and operational reports to FSC |
Tax | 0% corporate income tax |
Unregulated activities | Crypto mining and proprietary trading by funds |
Penalty | Up to 5 years imprisonment and a $1000 fine for unlicensed operation |
Application fee | USD 10,000 |
Additional Law | Crypto Asset Act 2020, SIBA, POCCA, TIBA |
Security Business Act | 2010 |
The BVI Financial Services Commission (FSC) is the main federal body regulating cryptocurrency. It maintains light but adequate laws in the country to encourage fintech innovation under supervision.
It is one of the top 7 crypto-friendly countries. BVI has operated a regulatory sandbox in 2020 that oversees taxes and maintains a legal system in the crypto space.
FSC ensures that anti-money laundering (AML) and combating financing of terrorism (CFT) are obeyed properly by crypto traders. It ensures that businesses are complying with the BVI’s Proceeds of Criminal Conduct Act (POCCA).
Under the VASP Act, the BVI has made it a tax-neutral jurisdiction. Individuals/ businesses/ traders/ investors are not obliged to pay taxes on crypto-related activities. Trading/ holding/ mining/ staking are not subject to taxation under BVI’s crypto law.
BVI companies and businesses are required to submit annual economic substance declarations and annual returns, and they can obtain a certificate of tax exemption from local authorities to confirm their tax-free status.
This no-tax policy harboured global attraction to use BVI companies for holding or trading crypto assets in the British Virgin Islands rather than relocating.
Crypto adoption in business:
Retail adoption rate:
Crypto Holdings:
With a zero tax regime and straightforward regulatory systems for cryptocurrency, the British Virgin Islands has become a top choice for traders. It may adopt a 15% tax for large multinational companies operating crypto, but so far in 2025, no such laws are in force. Despite a tax-free regime, the BVI is rapidly growing in terms of digital assets.
Yes, crypto is legal in the BVI under the VASP Act, which regulates virtual asset services since 2023.
No, BVI has a 0% tax on crypto trading, holding, mining, or staking, making it a tax-neutral jurisdiction.
The VASP Act 2022 regulates crypto businesses in BVI, requiring registration, AML compliance, and licensing.
Yes, all VASPs must register with the BVI FSC and follow AML rules under the VASP Act.
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