Regulatory Alerts2022-12-29
Virtual Assets Service Providers Act, 2022
The Legislature of the Virgin Islands enacted this Act to establish a comprehensive registration and supervision framework for Virtual Asset Service Providers (VASPs) operating within the jurisdiction. The Financial Services Commission mandates that entities providing virtual asset services, custody functions, or exchange operations obtain registration by meeting fit-and-proper criteria, maintaining financial soundness, implementing robust AML/CFT and cybersecurity safeguards, and submitting regular audits. The legislation grants the Commission and Financial Investigation Agency broad enforcement, exemption, and regulatory sandbox powers to oversee compliance, manage cancellations or revocations, and govern the evolving virtual asset market.