The parent company of Kraken, Payward, has been approved for a virtual asset service provider (VASP) in the British Virgin Islands.
The British Virgin Islands Financial Services Commission (BVI FSC) will enable it to provide regulated digital asset services to clients operating from or through the BVI.
Kraken/Payward states that the BVI is growing in importance as a leading jurisdiction for digital asset issuance and usage.
Elise Donovan, CEO of BVI Finance, says the jurisdiction has long been a cornerstone of international finance.
“Payward’s licensing is another strong endorsement of the BVI as a trusted jurisdiction for digital assets and further demonstrates the continued confidence that leading global firms have in our legal framework, regulatory architecture, and professional ecosystem.”
She added they are seeing growing demand from firms looking to operate a blockchain-based business in a locale that offers regulatory certainty.
The Minister responsible for Financial Services and Economic Development, Hon. Lorna Smith, OBE, said the decision was a “strong endorsement of the progressive balance we have achieved between fostering innovation and maintaining a robust approach to regulation.”
The BVI has targeted digital assets as an area where it can be competitive. The VASP Act was approved in 2023. The region has become a top domicile for crypto hedge funds with increasing activity in tokenization, DeFi, funds, and more. The cost to set up an entity is reportedly lower than in the Cayman Islands.
