Is crypto legal in British Virgin Islands? Regulation & rules (2026)

The VASP Act 2022 came into force on 1 February 2023, requiring any entity conducting virtual asset services in or from the BVI to register with the FSC. Three registration categories exist: exchange, custody, and general VASP. As of 30 July 2025, 14 entities were registered; the first approvals were granted on 27 March 2024.

The BVI FSC launched a Virtual Asset Service Providers Advisory Committee (VASPAC) in March 2025 as a public-private consultative body. The FSC's Compliance Inspection Unit is conducting onsite inspections of VASPs throughout 2025 and into Q1 2026. In November 2025 the FSC issued Circular 43 containing a FAQ on VASP regulation.

The VASP Act does not regulate the sole act of issuing virtual assets or tokens. BVI law does not distinguish among governance tokens, payment tokens, or NFTs. Token issuances may trigger SIBA if tokens qualify as 'investments', but most utility tokens do not; AML/CFT obligations under the Proceeds of Criminal Conduct Act still apply to all BVI persons.

The BVI levies no income tax, capital gains tax, VAT, or withholding tax. Crypto trading, staking, and investment activities by individuals and corporates are entirely tax-free; the jurisdiction is classified as a tax-neutral haven for digital assets.

As of mid-2025, the BVI Regulatory Code had not yet been amended to incorporate VASP-specific conduct rules; the FSC indicated an amendment was expected before year-end 2025. Until enacted, VASPs must comply with existing FSC Regulatory Code provisions and VASP Act requirements simultaneously.

All registered VASPs must comply with AML/CFT requirements aligned with FATF Recommendations, including customer due diligence, suspicious transaction reporting, and record-keeping. Even unregistered BVI issuers remain subject to the Proceeds of Criminal Conduct Act and cannot facilitate money laundering or sanctions violations.