VASP Licence

With the rapid development of the cryptocurrency market and increased regulatory scrutiny of the industry, obtaining a Virtual Asset Service Provider (VASP) licence is becoming a prerequisite for operating legally. This licence allows companies to exchange, transfer and store cryptocurrencies, giving them a legal basis to operate in different countries. In 2024, Lithuania and the Czech Republic are particularly attractive jurisdictions for obtaining a VASP licence. In this article, we will look at the main opportunities offered by the VASP licence and analyse the advantages of obtaining this licence in these countries.

What is a VASP licence?

The VASP licence, or Virtual Asset Service Provider licence, is governed by FATF (International Money Laundering Task Force) guidelines and aims to ensure transparency in cryptocurrency transactions. Obtaining a licence entitles a company to:

• Cryptocurrency Exchange: Buy and sell cryptocurrencies for fiat money or other digital assets.
• Cryptocurrency Storage: Cryptoasset storage and management services for third parties.
• Cryptocurrency Transfer: Transfer of cryptocurrencies between users.

Advantages of obtaining a VASP licence in Lithuania

Lithuania represents one of the most attractive jurisdictions for obtaining a VASP licence for several reasons:

1. Regulatory clarity: Lithuanian regulators are actively working to create transparent and understandable cryptocurrency legislation.
2. Simplicity of the procedure: Lithuania offers a relatively quick and less bureaucratic process for obtaining a licence compared to other countries.
3. Tax incentives: Low tax rates and favourable conditions for technology companies.

Advantages of obtaining a VASP licence in the Czech Republic

The Czech Republic is also attracting cryptocurrency companies due to the following factors:

1. Stable economic environment: High level of economic stability and developed financial system.
2. Support for innovation: The Czech government supports innovation and the development of new technologies, including cryptocurrencies.
3. Access to European markets: Due to its membership in the European Union, a licence obtained in the Czech Republic opens access to the broad European market.

Conclusion: The choice of country to obtain a VASP licence depends on many factors, including the regulatory environment, tax policy and business climate. Lithuania and the Czech Republic offer significant advantages for cryptocurrency companies planning to expand their operations in Europe. Obtaining a VASP licence in these countries will not only legalise the activity of exchanging, transferring and storing cryptocurrencies, but will also provide the company with a reputational advantage on the international stage.

VASP licence cost/price

With the growing interest in cryptocurrencies and the need to regulate them, many companies are faced with the issue of obtaining a Virtual Asset Service Provider (VASP) licence. The cost of such a licence varies depending on the country, the complexity of the procedure and the requirements for licensees. In this article, we look at the cost and requirements for obtaining a VASP licence in two European countries, the Czech Republic and Lithuania, examining the factors that influence the cost of a licence.

Cost of VASP licence in the Czech Republic

In the Czech Republic, obtaining a VASP licence is considered a relatively affordable option. The cost starts from €3,400, making it one of the most attractive in terms of initial investment in Europe. The process involves several key steps:

1. Filing: Includes preparation of documentation and formal application to regulators.
2. Legal support: Necessary to ensure compliance of the company’s activities with Czech law.
3. Compliance checks: Compliance with FATF and local anti-money laundering (AML) regulations.

These costs may increase depending on a company’s specific situation, such as the need for additional legal training or the integration of complex security systems.

Cost of VASP licence in Lithuania

Lithuania offers a higher initial licence fee – from 9900 euros. This is due to stricter compliance requirements and the greater complexity of the licensing process. The main components of the cost include:

1. Preparation of documentation: More extensive than in the Czech Republic, requires a detailed description of all aspects of the activity.
2. Compliance and technical audits: Lithuania requires thorough audits of management systems and data security.
3. Legal and advisory services: Need for more in-depth legal support and advice on adapting to Lithuanian legislation.

Requirements and cost analyses

The choice of country for obtaining a VASP licence depends not only on the cost of the licence, but also on the company’s business goals, market specifics and strategic plans for the future. The Czech Republic offers lower start-up costs and simpler entry barriers, which may be attractive for start-ups and companies with limited resources. Whereas Lithuania, despite higher start-up costs, offers a stricter and more protected regulatory regime, which may be favoured by larger companies or those looking for a more robust regulatory environment.

Conclusion: The choice between the Czech Republic and Lithuania to obtain a VASP licence should be based on a thorough analysis of financial capabilities, business strategy and specific requirements for cryptocurrency operations. Both countries offer significant opportunities, but the key to a successful operation lies in understanding and complying with regulatory requirements, which can ultimately have a significant impact on overall business value and performance.

 VASP licence Lithuania

Lithuania is becoming one of the most attractive regions for cryptocurrency transactions in Europe, attracting investors due to its progressive and friendly approach to regulating virtual assets. As of 2024, more than 500 companies have already benefited from obtaining a licence to conduct cryptocurrency transactions, confirming Lithuania’s reputation as a leader in this field.

Virtual Asset Service Provider (VASP) Licence

The VASP (Virtual Asset Service Provider) licence in Lithuania is granted by the Financial Commission for Combating Money Laundering (FCIS). This licence is a key element for companies seeking to conduct legitimate transactions with cryptocurrencies and other virtual assets.

Advantages of the Lithuanian VASP licence:

• Language accessibility: FCIS provides all relevant information in English, making it easier for foreign investors to understand the requirements and processes.
• Transparency: Each licence has a unique number and information on licensed companies is publicly available, which helps to increase trust and transparency in the industry.
• Regulator support: The Lithuanian regulator is known for its openness and willingness to meet business needs, which greatly facilitates the process of adaptation and compliance with regulatory requirements.

Process for obtaining a licence

Obtaining a VASP licence in Lithuania requires careful preparation and understanding of local legislation. The process includes application, company documentation, proof of transparency of funding sources, and anti-money laundering (AML) and counter-terrorist financing (CFT) compliance plans.

The stages of applying for a licence:

1. Documentation Preparation: Includes collection of corporate documents, AML and CFT policies, and detailed executive summaries.
2. Application: The application is submitted to FCIS, followed by a verification period.
3. Control and approval: FCIS conducts a detailed review of the data provided, including financial flows and management structure.

Conclusion: In light of the growing popularity of cryptocurrencies and virtual assets, Lithuania provides a powerful platform for legal and efficient operation in this dynamically developing area. Obtaining a VASP licence opens doors for companies to international cooperation and strengthens their legal protection at the European and global level.

Lithuania not only supports cryptocurrency initiatives at the highest level, but also actively promotes a favourable investment environment, making it one of the best places to start and grow a virtual asset business in 2024.

VASP licence in Estonia

Estonia, one of the pioneers in cryptocurrency regulation, established itself as a leader in granting licences for virtual assets, issuing more than 2,000 such licences. However, the following years have brought significant changes in the approach to regulating this rapidly developing sector, which has significantly affected Estonia’s status as a cryptocurrency hub.

Historical context

Estonia was one of the first countries to pass legislation allowing companies to operate legally in the cryptocurrency sector. Initially, the liberal policy attracted many international companies seeking a Virtual Asset Services Provider (VASP) licence.

Growth and popularity

At the beginning of its journey, the Estonian cryptocurrency market grew rapidly in size, which facilitated the development of connected technologies and the inflow of investments. The number of licensed companies exceeded 2,000, which was a notable factor in the growth of the national economy.

Regulatory changes

Over time, the Estonian government has tightened the requirements for cryptocurrency licence holders in order to combat money laundering and terrorist financing. This led to two major waves of licence revocations, resulting in most companies losing their right to operate in the country.

Current state of the market in Estonia

As of 2024, only a few companies with a valid VASP licence remain in Estonia. The country’s policy on new licences has become much stricter, which has affected the general perception of Estonia as a hub for cryptocurrency activity.

Reasons for tightening regulatory measures

• Combating financial crime: Increased focus on transparency of transactions and AML/CFT requirements.
• Investor Protection: The need to ensure that the rights and interests of market participants are protected.
• Compliance with international standards: Adapting to global trends in the regulation of virtual assets.

Conclusion: Changes in Estonia’s regulatory policy affect the entire cryptocurrency industry in the country. Tightening requirements and reducing the number of licensed companies have affected Estonia’s attractiveness as a jurisdiction for crypto-business. However, maintaining high regulatory standards and a focus on security and transparency may, in the long term, help restore trust and attract responsible players to the market. Estonia continues to be an important player on the map of European cryptocurrency jurisdictions, albeit with new restrictions and challenges.

 VASP licence Malta

Malta, often referred to as the ‘Blockchain Island’, has earned its reputation for its progressive regulatory policies on cryptocurrencies and blockchain technology. The country was the first in the European Union to propose a comprehensive regulatory framework for licensing virtual asset service providers (VASPs). Despite the attractiveness of this initiative, high authorised capital requirements make Malta less accessible to many start-ups in the crypto industry.

Regulatory environment in Malta

In 2018, the Maltese government passed three laws aimed at regulating distributed ledger technology (DLT), which included creating a clear legal framework for cryptocurrency transactions and blockchain platforms. These measures were aimed at attracting crypto investors and startups, hoping to strengthen the country’s economy through innovative technologies.

Key requirements for obtaining a VASP licence:

• Authorised capital: At least €730,000, which is significantly higher than in most other jurisdictions.
• Compliance with AML/CFT policies: Strict AML/CFT
• Confirmation of management competence: All key persons in the company must demonstrate relevant experience and qualifications.

Analysing the issues

High authorised capital is a significant barrier for new companies and start-ups. This requirement reflects Malta’s desire to ensure that companies operating in the cryptocurrency market are financially sound and serious. However, it also limits the opportunities for SMEs that could contribute to innovation and market development.

Impact on crypto-entrepreneurs

Many crypto entrepreneurs and startups looking for a jurisdiction to launch their projects often reject Malta in favour of more accessible countries with lower initial capital requirements, such as Estonia or Lithuania. This results in Malta losing potential innovators despite its regulatory advantages.

Conclusion: Malta’s high standards and stringent requirements make it one of the most protected and secure jurisdictions for cryptocurrency transactions in the European Union. However, in order to maintain its position as a leader in the crypto industry, Malta may want to consider adapting its requirements to attract a wide range of investors and entrepreneurs looking to innovate and develop the cryptocurrency market on the blockchain island.

 VASP licence Czech Republic

The Czech Republic has recently stood out from other European Union countries as one of the most attractive and accessible jurisdictions for launching cryptocurrency projects. With its loyal regulatory norms, minimal documentation requirements and the possibility of remote company establishment, the Czech Republic is attracting the attention of crypto-entrepreneurs from all over the world.

Advantages of the Czech regulatory environment

Low cost and minimal barriers to entry

The Czech Republic provides minimal financial and administrative barriers to launching a crypto business. This makes the country particularly attractive for startups and individual entrepreneurs looking for opportunities to develop their projects in a stable and innovation-supporting jurisdiction.

Fast and remote registration process

The Czech Republic offers the possibility of fast and fully remote company registration, which greatly simplifies the process for foreign investors. This opportunity is particularly valuable in a global digitalisation and pandemic environment where personal visits to the country may be limited.

Loyalty of regulatory authorities

Czech regulators show flexibility and openness in the regulation of cryptocurrency transactions, which contributes to the creation of a favourable environment for the growth and development of the cryptocurrency market.

Obtaining a VASP licence in the Czech Republic

Application process

Obtaining a licence to provide virtual asset services in the Czech Republic requires compliance with regulatory requirements and submission of relevant documentation. However, compared to other EU countries, the requirements are less stringent, which simplifies and speeds up the process of obtaining a licence.

1. Preparation of required documents: Includes corporate documents, anti-money laundering (AML) policies and proof of identification of key individuals.
2. Submission of the application to the regulatory authority: The application is accompanied by all necessary documentation and sent to the relevant government agency for approval.
3. Obtaining a licence: After verification of the submitted data and documents, the company receives a VASP licence, which allows it to operate legally in the field of cryptocurrencies in the Czech Republic.

Conclusion: The Czech Republic offers one of the most loyal and accessible environments for launching cryptocurrency projects in the European Union. Minimal documentation requirements, the convenience of remote registration and the loyal approach of regulators make this country an ideal place for crypto-entrepreneurs in 2024. This is the kind of environment that fosters innovation and attracts capital to the country, which ultimately contributes to its economic and technological development.

 VASP licence Poland

Poland has become one of the European Union countries providing the possibility of legally obtaining a virtual asset transaction licence (VASP). To date, more than a thousand individuals and legal entities have obtained a cryptocurrency licence in Poland, indicating significant interest in this jurisdiction among crypto-entrepreneurs. However, for all the advantages, the Polish cryptocurrency market also has some peculiarities that may complicate the licensing process, especially for those who do not plan to stay in the country for a long time.

Advantages of the Polish VASP licence

Recognition and legitimacy

A VASP licence in Poland allows companies to operate in a legal environment, which is an important condition for attracting investors and building trust among clients. The licence provides a certain level of legitimacy and protection from potential legal risks.

Flexibility and variety of options

Poland offers a wide range of opportunities for cryptocurrency business, including cryptocurrency exchange, asset management and other services related to virtual assets. This makes the country attractive for entrepreneurs looking to diversify their business models.

Complexities and bureaucratic procedures

Despite a number of advantages, the Polish regulatory environment can be challenging for those who do not plan to stay in the country permanently. Bureaucratic procedures and formal requirements can complicate project realisation, especially for foreign investors.

The main challenges are:

• Local presence requirements: Poland requires a local office or representative, which can be difficult for companies planning to work remotely.
• Bureaucratic procedures: The process of obtaining a licence can be complex and involve numerous formalities, such as submitting documents in Polish and complying with local regulatory requirements.
• Regulatory pressure: Poland has recently been tightening controls on cryptocurrency transactions, which could lead to additional difficulties for companies operating in this field.

Conclusion: A VASP licence in Poland provides entrepreneurs with the opportunity to operate legally in the cryptocurrency industry, offering a number of advantages including recognition, flexibility and a variety of business options. However, if you plan to operate remotely or are not in Poland for an extended period of time, bureaucratic procedures and local presence requirements may make it difficult to realise your project.

In order to successfully obtain a licence and run your business in Poland, it is important to thoroughly prepare for the bureaucratic requirements and ensure compliance with all regulatory norms. In this case, Poland can become a reliable base for your cryptocurrency project in 2024.

 VASP licence Bulgaria

Cryptocurrency technologies have been actively developing in recent years, and many European countries are striving to adapt their legislation to the new realities of the financial world. Bulgaria, despite having a significant number of companies with a VASP (Virtual Asset Service Provider) licence, faces a number of difficulties that reduce its attractiveness for foreign investors wishing to launch cryptocurrency projects. In this article, we will look at the key aspects of VASP licensing in Bulgaria, as well as the main challenges faced by foreign entrepreneurs in this jurisdiction.

VASP licensing in Bulgaria

A VASP licence in Bulgaria is issued by the Financial Supervisory Commission (FSC), which is responsible for the regulation and supervision of all virtual asset market participants. In order to obtain a licence, a company must meet a number of requirements, including having an actual office in Bulgaria, proven capital, and professional and financial management. The process of obtaining a licence can take from several months to a year, due to the need to submit extensive documentation and undergo multi-stage verification.

Challenges for foreign investors

Despite the existence of a formal licensing mechanism, Bulgaria faces a number of challenges that may discourage foreign investors:

1. Bureaucracy and administrative delays: The process of obtaining a VASP licence is often associated with bureaucratic difficulties and lengthy administrative procedures, which can delay the launch of projects indefinitely.
2. Lack of specialised conditions for foreign investors: Bulgaria does not offer special conditions or incentives for foreign entrepreneurs, which makes it less attractive compared to other countries actively developing cryptocurrency infrastructure.
3. Underdevelopment of the cryptocurrency market: Despite the significant number of companies with a VASP licence, the cryptocurrency market in Bulgaria has not yet reached the level of development that can be observed in other European countries.

Conclusion: In the context of the current state of affairs, Bulgaria has the potential to develop as a cryptocurrency hub, but the existing bureaucratic and administrative barriers significantly reduce its attractiveness for foreign investors. To improve the investment climate, the country needs to significantly simplify licensing procedures, speed up administrative processes and create more favourable conditions for foreign entrepreneurs willing to work with virtual assets.

VASP licence Switzerland

Switzerland has long established itself as one of the most progressive countries in terms of cryptocurrency regulation. However, despite its hospitable reputation, the process of obtaining a licence for virtual asset service providers (VASPs) is fraught with complexities and requirements that can be a barrier for international entrepreneurs. This article discusses key aspects of VASP licensing in Switzerland, the requirements for applicants and potential restrictions for foreign investors.

VASP licensing in Switzerland

VASP licensing in Switzerland is regulated by the Financial Market Supervisory Authority (FINMA). The licensing process includes a detailed review of the business model, funding sources, management structures and internal control systems. Key requirements for obtaining a licence include:

1. Authorised capital: The minimum authorised capital must be at least EUR 300,000. This capital must be fully paid up and available for use.
2. Local employees: The company must have a minimum of three employees living and working in Switzerland.
3. Local office: Having a physical office in Switzerland is a mandatory requirement to prove that the company has a real presence in Switzerland.
4. Transparency and compliance: Companies must demonstrate full compliance with local and international laws, including anti-money laundering and counter-terrorist financing measures.

Challenges and constraints

Despite the clear advantages of running a cryptocurrency business in Switzerland, there are a number of restrictions:

1. High barriers to entry: High minimum authorised capital and the requirement for local employees can be a significant barrier for start-ups and small businesses.
2. Lengthy review process: The licence application process can take up to 8 months to complete, requiring significant time and resources.
3. Regulatory requirements: FINMA’s stringent governance and internal control requirements may require additional investment in systems and processes, increasing the overall cost of the project.

Conclusion: Switzerland continues to be one of the most attractive regions for cryptocurrency entrepreneurs due to its stable economic and political climate, as well as its advanced regulatory environment. However, the high financial and administrative requirements make this market more suitable for large and medium-sized companies willing to invest significant resources in developing their business. Smaller companies and start-ups may find it more difficult to adapt to the stringent requirements, requiring careful planning and possibly finding alternative strategies to enter the market.

 VASP licence in Dubai

The United Arab Emirates (UAE), and especially Dubai, has been actively establishing itself as one of the world’s leading centres for cryptocurrency and blockchain projects in recent years. The region not only attracts large international companies, but also creates a favourable environment for innovative virtual asset startups. In this article, we will take a detailed look at how the VASP (Virtual Asset Service Provider) licensing system functions in Dubai, what opportunities it opens up for business, and what challenges foreign entrepreneurs may face.

VASP licensing in Dubai

To start a cryptocurrency business in Dubai, you need to obtain a VASP licence. This process is managed by the UAE regulators who implement compliance standards on an international level, making licensing quite strict but transparent.

The main steps in obtaining a VASP licence include:

1. Filing an application: Businesses must file an application with the relevant regulatory authority such as the Dubai Financial Services Authority (DFSA) or other authorised authorities in free economic zones.
2. Proof of compliance: Companies must prove their compliance with local and international anti-money laundering and counter-terrorist financing regulations.
3. Financial strength: In order to obtain a licence, it must be demonstrated that there is a sufficient level of financial strength and management control.
4. Local infrastructure: The company should have an office in the UAE and preferably hire local cryptocurrency and blockchain experts.

Advantages of doing business in Dubai

Dubai offers a number of significant advantages for cryptocurrency companies:

• Strategic location: Dubai is strategically positioned between East and West, providing easy access to various markets.
• Tax incentives: The UAE offers attractive tax incentives, including the absence of income and value-added tax for certain transactions.
• Innovation ecosystem: Dubai is actively investing in the development of technology and innovation infrastructure, which creates a favourable environment for the growth and development of cryptocurrency projects.

Possible difficulties

Nevertheless, businesses should also consider some of the complexities:

• Regulatory complexity: High compliance requirements can create additional administrative and financial burdens.
• Competition: A high level of market attractiveness leads to increased competition, which can make it difficult for new companies to enter the market.

Conclusion: Dubai and the UAE as a whole provide a strong platform for cryptocurrency businesses due to its openness to innovation, progressive regulation and attractive tax environment. Obtaining a VASP licence is a key step to start operating in the region, and while the process can be complex, the benefits of doing business in the UAE can far outweigh the initial cost and effort.

 VASP licence Cayman Islands

The Cayman Islands, known for its attractive financial and tax policies, took a significant step towards regulating the cryptocurrency industry with the enactment of the Virtual Assets (Service Providers) Law 2020 (the “VASP Law”). This Act provided the foundation for the structuring and licensing of cryptocurrency and blockchain-related activities, establishing clear rules of the game for all market participants. In this article, we look at the key provisions of the VASP Law and what they mean for cryptocurrency companies seeking to operate in the Cayman Islands.

Main provisions of the VASP Act

The VASP Act was designed to ensure transparency and security in the field of virtual asset services and to prevent money laundering and terrorist financing through cryptocurrency platforms. Here are the main aspects regulated by the law:

1. Licensing and registration: All companies providing virtual asset services in the Cayman Islands are required to register and obtain the appropriate licence from the Cayman Islands Monetary Authority (CIMA). This includes custodial services, trading platforms and other services related to virtual assets.
2. Supervision and oversight: CIMA regularly supervises the activities of licensed companies to ensure that they comply with legal requirements and standards.
3. AML/KYC compliance: Companies dealing with virtual assets must strictly comply with international and local anti-money laundering and customer authentication (KYC) requirements.

Benefits of the VASP Act for business

The passage of the VASP Law has brought clarity to the Cayman Islands regulatory environment, which has created several benefits for cryptocurrency companies:

• Increased investor confidence: Clear regulation increases confidence in Cayman-based cryptocurrency platforms, making them attractive to international investors.
• User protection: The law protects the rights of users by requiring companies to be highly transparent and accountable.
• Stimulating innovation: A stable regulatory environment fosters innovation and technological advancement in blockchain and cryptocurrencies.

Possible difficulties

However, the VASP Act also imposes certain obligations and challenges for businesses:

• High compliance standards: Stringent licensing and regulatory requirements can be a barrier for new and small businesses.
• Administrative and financial costs: Maintaining compliance with regulatory standards requires significant resources, which can be burdensome for startups.

Conclusion: The 2020 VASP Law in the Cayman Islands is a significant step towards a sustainable and secure cryptocurrency ecosystem. It provides the necessary legal framework to protect market participants and stimulate the growth of the blockchain and cryptocurrency industry. At the same time, companies must be prepared to meet high standards and ensure compliance to operate successfully in this jurisdiction.

 VASP licence Hong Kong

Hong Kong, one of the world’s leading financial centres, is actively shaping its cryptocurrency policy. Striking a balance between supporting innovation and ensuring consumer protection has become a key challenge for Hong Kong regulators. The regulatory framework, including the Securities and Futures Ordinance (SFO) and the Anti-Money Laundering and Countering the Financing of Terrorism Ordinance (AMLO), ensures strict control and supervision of cryptocurrency activities. The Securities and Futures Commission (SFC) plays a central role in this process. This article discusses key aspects of cryptocurrency regulation in Hong Kong and the process of obtaining a Virtual Asset Service Provider (VASP) licence.

Regulatory framework

Hong Kong regulators have taken a comprehensive approach to regulating cryptocurrencies, including the following key elements:

1. Securities and Futures Ordinance (SFO): This document covers the regulation of investment products and services, including those related to cryptocurrencies, if they are classified as securities or futures contracts.
2. The Anti-Money Laundering and Countering the Financing of Terrorism Ordinance (AMLO): This regulation requires all cryptocurrency operators to comply with strict customer identification and reporting requirements.
3. SFC oversight: The Securities and Futures Commission oversees the activities of companies providing services with cryptocurrencies, including virtual asset trading platforms, which must obtain a VASP licence.

The process of obtaining a VASP licence

Companies must meet the following criteria and undergo a licensing process in order to start operating in the virtual assets sector:

1. Filing: The company files an application with the SFC, including details of its business model, AML/CFT compliance measures, and management and ownership information.
2. Compliance review: The SFC assesses how thoroughly the company approaches fulfilment of regulatory requirements, including risk management and customer protection.
3. Issuance of a licence: Upon successful completion of all requirements, the company is granted a VASP licence allowing it to officially provide cryptocurrency services in Hong Kong.

Opportunities and challenges

VASP licensing in Hong Kong offers significant business opportunities by creating a transparent and regulated environment. This helps to attract investment and build confidence in cryptocurrency platforms. However, companies face challenges related to the need for strict compliance with regulatory standards and high internal control and risk management requirements.

Conclusion: Hong Kong continues to lead the way in regulating cryptocurrencies to protect investors and maintain high standards in the industry. The VASP licensing system plays a key role in enabling cryptocurrency companies to operate safely and efficiently in this dynamic sector.

 BVI VASP licence

The British Virgin Islands (BVI) is actively developing its legal framework to regulate virtual asset service providers (VASPs). The VASP Act aims to create a clear regulatory environment that provides consumer protection and market stability, while fostering innovation and making the jurisdiction attractive to cryptocurrency companies. This article discusses the main provisions of the VASP law in the British Virgin Islands and describes the process of obtaining the relevant licence.

VASP Act in the British Virgin Islands

The VASP Act was introduced to regulate companies engaged in providing the following virtual asset services:

1. Provision of virtual asset services: This includes virtual asset exchanges, transfers, and mediation and advice services in this area.
2. Virtual Asset Custody Services: These are custodial services related to the storage and management of cryptocurrencies and other forms of digital assets on behalf of a client.

The process of obtaining a VASP licence

The process of obtaining a VASP licence in the British Virgin Islands requires strict adherence to regulatory requirements and involves several key steps:

1. Application: Legal entities apply for a licence to the BVI regulatory agency, providing full details of their business, including a business plan, evidence of AML/CFT compliance, beneficial ownership and management information.
2. Verification and assessment: The regulator conducts a thorough review of the information provided and assesses the applicant’s competence in the safe management of virtual assets, as well as its ability to comply with legal requirements.
3. Issuance of a licence: After successfully passing the inspection and confirming compliance with all requirements, the applicant is granted a licence that allows them to officially operate in the virtual asset sector in the BVI.

Benefits and Challenges

Benefits:

• Regulatory clarity: Clear regulation in the BVI promotes transparency of operations and builds confidence among customers and investors.
• Consumer protection: Strict licensing requirements aim to protect the rights and funds of users, thereby increasing the security of investments.
• International recognition: Obtaining a licence in a recognised and respected jurisdiction like the BVI improves the reputation and competitiveness of companies in the global marketplace.

Challenges:

• Complexity of the process: Obtaining a licence requires a significant investment of time and money to prepare and comply with all necessary requirements.
• Technical training: Companies need to ensure a high level of technical and safety training to meet the regulator’s standards.

Conclusion: VASP licensing in the British Virgin Islands provides companies with the opportunity to operate in a legally clearly regulated environment, facilitating the growth and development of the cryptocurrency industry. This not only improves the investment climate and provides investor protection, but also supports international standards in cryptocurrencies and blockchain.