Overview of crypto regulations
Setting up a cryptocurrency/blockchain business entity in the BVI
"Today, cryptocurrency has become popular in those BVI structures which use an international business company “IBC” as part of it. The structure of the crypto currency must have an initial coin offering (ICO) of crypto currency to structure itself as a financial vehicle. An ICO is the accessibility to third party capital. In an ICO, investors exchange cash or monies for a new crypto currency on a blockchain network. Here, the crypto assets become a credit or token to purchase goods or a service in the application into which the ICO proceeds will be invested. The ICO has an ICO Sponsor or Founder who creates the business plan or “white paper” to detail the fundraising target goals. The ICO Sponsor appoints an ICO Issuer that enhances the funds issuing crypto-currency token on a blockchain network. Typically, the ICO Issuer is an incorporated “IBC” established under the BVI Business Companies Act, 2004.
Currently in the BVI there is no current regulatory framework that prohibits cryptocurrency and blockchain business. The government has embraced the idea of a crypto currency industry and regulation in the future, nevertheless the current scenario allows you to incorporate your company by simply establishing the below:
- Filing the incorporation of an International Business Company “IBC” at the Registry of the BVI
- Appointing a minimum of one director either corporate or natural person,
- Appointing a minimum of one shareholder either corporate or natural person,
- Appointing a register agent that has a registered office in the BVI, that will maintain corporate documents."