How the BVI became a leading jurisdiction for digital assets

As the global digital-assets community gathered in Singapore for TOKEN2049, one message was clear: the conversation is shifting from experimentation to execution.

Across Asia, regulatory frameworks are developing, institutional participation is expanding and real-world asset tokenisation is moving into practical deployment. Project sponsors are also paying closer attention to governance, custody, regulatory status and the legal architecture underpinning digital-asset products.

For the British Virgin Islands (BVI), these developments present significant opportunities across token issuances, stablecoin issuances, tokenised investment funds and regulated virtual asset businesses. The strongest digital-asset projects will not simply be innovative. They will also be structured to operate, scale and attract institutional participation. The BVI has a meaningful role to play in that transition.

Token issuers

BVI companies continue to be widely used in digital-asset structures. The flexibility of the BVI corporate and regulatory framework makes it well suited to token issuances, protocol development, decentralised projects and broader Web3 arrangements.

Importantly, the issuance by a BVI entity of its own token does not, in and of itself, generally constitute a virtual asset service under the BVI Virtual Assets Service Providers Act, 2022 (the VASP Act). The issuance should normally be for utility tokens and non-security tokens to avoid SIBA requirements. However, this does not mean that all activities associated with a token issuance fall outside the BVI's regulatory framework. Token issuers may remain subject to the BVI's anti-money laundering, counter-terrorist financing and counter-proliferation financing framework, as well as applicable international sanctions, and should maintain appropriate customer due diligence, ongoing monitoring and other risk-mitigation measures.

Whether a structure falls within the VASP Act depends principally on the activities undertaken, rather than the terminology used to describe the entity or token. Careful analysis is required at the structuring stage, particularly where the entity provides services for or on behalf of others.

The BVI's relevance to tokenisation is also reflected in broader market data. According to BVI Finance's Destination Digital: An On-Chain Future report, the BVI had approximately US$1.2 billion in stablecoins as of June 2026, the highest total among the Caribbean jurisdictions surveyed. The report also identified 305 tokenised securities linked to the BVI, more than any other jurisdiction surveyed. These figures illustrate that the BVI's role in digital assets extends beyond legal structuring and into the wider on-chain ecosystem.

Tokenised investment funds

Tokenisation is also becoming increasingly relevant to investment funds. Rather than creating a whole new asset class, it can provide a different infrastructure for issuing, holding and transferring interests in traditional or alternative investment products.

The BlackRock USD Institutional Digital Liquidity Fund, commonly known as BUIDL, illustrates the significance of this development. The fund is incorporated in the BVI and recognised by the BVI Financial Services Commission as a Professional Fund.

The BVI's established funds framework gives sponsors several potential routes for structuring tokenised products, depending on their target investor base, liquidity profile and investment strategy. The key is to align the token mechanics with the underlying legal rights, including subscription, ownership, transfer, valuation and redemption.

Regulated virtual asset businesses

The VASP Act established a dedicated framework for the registration and supervision of virtual asset service providers operating in or from within the BVI. It addresses exchanges, custody, client assets, audit, anti-money laundering and counter-terrorist financing compliance, and regulatory reporting.

The regime is also gaining commercial traction. As at June 2026, 26 successful VASP registrations were publicly known, with Ogier having advised on five of them, including registrations for Top Value (BVI) Limited and Matrixport Technologies Ltd. Payward, the parent company of Kraken, has also secured BVI VASP registrations, adding one of the world's largest digital asset infrastructure providers to the jurisdiction's growing digital assets ecosystem.

As the market matures, regulatory status is increasingly becoming part of a digital-asset business's institutional credibility. Sponsors considering the BVI should determine at an early stage whether their proposed activities require VASP registration and ensure that their governance, compliance and operational arrangements are capable of supporting both the application process and the ongoing regulated business. For more information, see our article: BVI VASP registration: practical requirements.

A framework for further innovation

The BVI regulatory sandbox provides a further option for businesses seeking to test innovative financial technology within a supervised environment. The BVI Financial Services Commission's sandbox framework is intended to support the testing of innovative fintech while maintaining appropriate safeguards and regulatory oversight.

This may be relevant to emerging business models that do not fit neatly within traditional categories, including prediction markets, decentralised finance, robo-advisory services and other technology-enabled financial products. The sandbox is not a substitute for substantive regulation, but it can provide a structured route for testing new products and services.

Looking ahead

The next stage of digital-asset development will be shaped not only by technology, but also by the quality of the legal, regulatory and operational infrastructure supporting it.

For APAC sponsors, the BVI offers a combination of corporate flexibility, established investment fund products, a dedicated VASP regime and a regulatory sandbox for emerging applications. The opportunity is to use these tools to connect innovation with credible governance and regulatory compliance.

How Ogier can help

Ogier has a track record of assisting clients in the launch and ongoing compliance of tokenised projects, drawing on the expertise of our dedicated Technology and Web3 team, together with regulatory specialists across multiple jurisdictions. Our experience spans structuring tokenised vehicles, addressing governance, risk management, and navigating the regulatory requirements imposed by local regulators.

For more information, contact our team below.

About Ogier

Ogier is a professional services firm with the knowledge and expertise to handle the most demanding and complex transactions and provide expert, efficient and cost-effective services to all our clients. We regularly win awards for the quality of our client service, our work and our people.

Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

Regulatory information can be found under Legal Notice