In August 2020, the British Virgin Islands’ Financial Services Commission introduced its Financial Services Regulatory Sandbox Regulation.
What exactly does this mean? What is the purpose? Let’s break it down.
What is the British Virgin Island Financial Services Commission?
The 2001 British Virgin Island (BVI) Financial Services Commission Act established the BVI Financial Services Commission. The commission independently regulates, inspects, and supervises all of the territory’s financial services (trustee business, banking, mutual funds establishments, company management, company registrations, intellectual property, limited partnerships, etc.). Put simply, it protects financial services regulatory freedom and carries out commitments to white collar crime prevention, all while safeguarding business transaction confidentiality and privacy.
What is a Regulatory Sandbox?
A regulatory sandbox is a business concept that allows firms to assess business models, new ideas, and pioneering services, all within a set of supervised prerequisites and under appropriate precautions.
BVI’s Financial Services Regulatory Sandbox
Approved participants would have eighteen months (and perhaps an extension) to perform unlicensed BVI financial services business. Such would establish a more effective, pro-market business environment that remained regulated. Its defined and controlled testing seeks to promote the Financial Technology (FinTech) sector’s advancement and offer groundbreaking financial solutions.
In April 2021, the BVI Financial Services Commission approved a global bank that was linked to a leading worldwide crypto exchange as the first partaker into the Regulatory Sandbox. Other eligible entities may now apply to the commission for consideration as a Regulatory Sandbox participant.
BVI’s role in the Digital Market
BVI is focused on the digital assets market and is a choice jurisdiction for token generation through Initial Coin Offerings. It remains committed to the territory’s establishment as the top digital International financial hub.
CCP Financial Consultants Limited
CCP Financial Consultants Limited is a BVI based, multidisciplinary financial services firm dedicated to providing premium financial solutions to clients around the world. It’s services include Company Incorporation and Management, BVI Offshore Company Ship Registration, Liquidations, Accountancy, Economic Substance, and assistance with the opening of bank accounts.
Through established contacts, CCP can also assist with regulatory sandbox application and fulfilling your requirements in the digital assets space. (Please see our earlier blog regarding Using British Virgin Island Companies for Cryptocurrency Initial Coin Offerings and Blockchain Innovation).
Please visit the website for more details on our full range of services and, if required, you can schedule a consultation for more information.