parent company Kraken, Payment, Approved for a virtual asset service provider (VASP) in the British Virgin Islands.
British Virgin Islands Financial Services Commission (BVI FSC) will enable it to provide regulated digital asset services to customers operating in or through the BVI.
Kraken/Payward notes that the BVI is growing in importance as the leading jurisdiction for the issuance and use of digital assets.
Elise DonovanCEO BVI Financejurisdiction has long been a cornerstone of international finance, he says.
“Payward’s licensing is a strong endorsement of the BVI as a trusted jurisdiction for digital assets and further demonstrates the continued confidence of leading global firms in our legal framework, regulatory architecture and professional ecosystem.”
He added that they are seeing increasing demand from companies looking to operate a blockchain-based business in a region that offers regulatory certainty.
Minister Responsible for Financial Services and Economic Development Mr. Lorna SmithThe OBE said the decision was “a strong confirmation of the progressive balance we have achieved between encouraging 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. With increased activity in tokenization, DeFi, funds, and more, the region has become a prime home for crypto hedge funds. The cost of establishing a presence is reportedly lower than in the Cayman Islands.
