Virtual assets regulation in BVI: Challenges and opportunities
BVI虚拟资产监管的挑战与机遇
Regulators globally are wrestling with tough questions as to how virtual assets should be regulated. The last year has seen significant volatility in the prices of major cryptocurrencies. With such volatility, fortunes have been made and lost, with losses often borne by inexperienced retail investors.
全球各地监管机构都在绞尽脑汁地应付如何监管虚拟资产的问题。去年，主要加密货币价格剧烈波动，有人大赚，也有人巨亏，而亏损往往由经验不足的散户投资者承担。
With an eye to investor protection, some onshore jurisdictions (such as the Hong Kong SAR) have proposed that virtual assets exchanges should only be permitted to offer services to professional clients and would be restricted from serving retail clients.
Similarly, the People's Bank of China in September 2021 published a notice regarding the ban in the PRC of cryptocurrency and related transactions.
Indonesian regulators have also recently taken steps to ban financial firms from facilitating cryptocurrency sales.
At the same time, there has been increased interest by virtual assets businesses in offshore jurisdictions such as the British Virgin Islands (the "BVI").
Attractions of the BVI include its tax neutrality, respected regulator and responsiveness to global regulatory trends, common law legal system, low corporate set-up and maintenance costs and investor familiarity. While these attributes are well understood in the 'traditional' corporate and finance sectors, they are also proving appealing to businesses operating in the virtual assets space which, in addition to being decentralised by nature, tend to be nimble, innovative and jurisdiction-agnostic in terms of their approach to business.
This article considers the current regulatory regime in the BVI as it may apply to cryptocurrency and virtual assets businesses.
Regulation in BVI
The BVI does not currently have a specific regulatory framework for virtual assets or cryptocurrencies, although it is expected that the jurisdiction will in time (in common with other jurisdictions) develop a regulatory framework tailored specifically for virtual assets.
In guidance issued on 10 July 2020 (the "FSC Guidance") the BVI Financial Services Commission ("FSC") confirmed that the question of whether licensing is required for virtual asset related activities will be determined under existing financial services legislation.
Cryptocurrency and virtual assets businesses (particularly those whose activities include operating a cryptocurrency exchange or engaging in crypto lending) will need to consider whether their proposed activities fall within any of the following before establishing in the BVI:
- the Banks and Trust Companies Act 1990, as amended (the "BTCA");
- the Financing and Money Services Act, 2009 (as amended) ("FMSA"); and
- the Securities and Investment Business Act, 2010 ("SIBA").
Each is discussed in further detail in this note.
Cross border
Any discussion of regulation of virtual assets in a single jurisdiction would be incomplete without reference to the significant cross-border risks which are inherent to the decentralised nature of virtual assets.
A key concern is that although a virtual assets businesses may in fact be appropriately regulated (or not subject to regulation) in a particular jurisdiction, its service offerings may trigger significant regulatory implications in other jurisdictions as cross-border targeting of investors and customers may require cross-border registration and regulation as well.
Accordingly, compliance with applicable regulation in an offshore jurisdiction such as the BVI will not exclude a business from regulatory enforcement action in any other jurisdiction in which it makes its services available to customers. Appropriate advice under the laws of such jurisdictions should always be taken.
Banks and Trust Companies Act
Virtual assets businesses whose activities involve dealing in fiat currency or holding fiat currency deposits on behalf of customers should ensure that their activities do not inadvertently constitute 'banking business' as defined in the BTCA (for which the appropriate licence is required).
Banking business means the business of accepting deposits of money which may be withdrawn or repaid on demand or after a fixed period or after notice, by cheque or otherwise and the employment of such deposits, either in whole or in part—
- in making or giving loans, advances, overdrafts, guarantees or similar facilities, or
- the making of investments, for the account and at the risk of the person accepting such deposits.
Business or exchanges that hold fiat currency on behalf of their clients and invest the same will need to consider whether the above provisions of the BTCA apply to them.
Financing and Money Services Act
FMSA regulates financing business and money services business.
Financing business broadly relates to the provision of credit to borrowers located in the BVI. More relevantly for virtual assets businesses, the definition of 'financing business' was expanded in 2019 to include 'carrying on the business of international financing and lending in the peer-to-peer (P2P) FinTech market, including peer-to-business (P2B) and business - to - business (B2B) markets.'
Money services business is a category of regulated activity that includes, among other things, the business of transmission of money in any form, including electronic money, mobile money or payments of money.
The FSC Guidance confirms that the transmission of virtual assets or virtual asset related products would not require a licence under FMSA.
However, to the extent that a virtual assets business handles fiat currency on behalf of customers it should be mindful of the above and seek advice as required to ensure its activities are not in scope of regulation (to the extent it does not hold the necessary licence under FMSA).
Should the activities of a business fall within the FSMA definitions of money services business or financing business, that business will be required to hold a licence under FMSA (which brings with it various obligations, including segregating customer accounts, submission of audited financial statements for each financial year to the FSC and maintenance of capital resources).
Securities and Investment Business Act
The following activities require a licence under SIBA:
- dealing, arranging deals in or managing investments;
- providing investment advice;
- providing custodian services with respect to investments;
- providing administration services with respect to investments; and
- operating an investment exchange.
A key question under SIBA is therefore whether the virtual assets with which the business is dealing would constitute investments for the purposes of SIBA.
SIBA regulates many categories of traditional investments such as shares, interests in a partnership or fund, debentures, interests in a collective investment scheme and certain derivatives.
It is a matter of judgement as to whether a specific virtual asset would be considered an investment for the purposes of SIBA (which would require licensing to engage in the activities listed above in respect of such assets).
A virtual asset or other digital property which is only a medium of exchange with no benefits or rights other than ownership of the coin would not be considered an investment and the FSC Guidance confirms that such assets will generally fall outside the scope of regulation.
The FSC Guidance also confirms that utility tokens which only provide the purchaser with an ability to purchase goods and services are not in scope of regulation.
However, where a virtual asset provides a benefit or right beyond a medium of exchange (because, for example, such assets grant rights to shares or create or acknowledge a debt) then SIBA can apply on the basis that such virtual asset constitutes an investment.
Some virtual assets can provide other benefits to the holder such as rights to: (i) vote on different protocol proposals, (ii) be eligible for part of the protocol profits or fees; or (iii) to take part in a decentralized autonomous organization.
Advice should therefore always be taken prior to engaging in activities involving virtual assets in or from within the BVI to determine whether the virtual assets could be considered 'investments' for SIBA purposes requiring a licence to deal in them.
Conclusion
Virtual assets remain a rapidly developing and exciting area of the market, generating challenges and opportunities for virtual assets businesses, investors, lawyers and regulators alike.
While the BVI does not currently have a regulatory framework tailored specifically for virtual assets, industry participants wishing to conduct virtual assets related business in the BVI or utilising BVI entities, will need to carefully consider whether their proposed activities will bring them within the ambit of existing BVI financial services legislation.
One of the benefits of the BVI as an offshore jurisdiction is its experienced network of BVI-qualified practitioners located in major business centres around the world, ensuring that real-time legal advice and guidance is available every step of the way.
An original version of this article was first published by Asia Business Law Journal, April 2022.
着眼于投资者保护，部分在岸司法管辖区（如香港）提议，只准虚拟资产交易所向专业客户提供服务，限制其服务散户。同样，2021年9月，中国人民银行发布在中国内地禁止加密货币和相关交易的通知。最近，印尼监管机构也采取措施，禁止金融公司为加密货币买卖提供便利。
同时，虚拟资产企业对英属维尔京群岛（BVI）等离岸司法管辖区的兴趣日渐浓厚。
BVI的吸引力包括：税收中性；受人尊敬的监管机构和对全球监管趋势的快速响应；普通法法律体系；低廉的公司设立和维持成本；投资者对它的熟悉程度。
这些特征为“传统”的公司和金融行业所充分了解；同时，它们也吸引了从事虚拟资产领域业务的企业，因为就虚拟资产领域的经营方法而言，除了天然的去中心化特征之外，该领域通常很灵活，充满创新，而且对管辖区域的选择比较自由。
本文考察了适用于加密货币和虚拟资产企业的BVI监管体制。
BVI监管
BVI并无专门的虚拟资产或加密货币监管框架，但是预计该司法管辖区将和其他司法管辖区一样，适时制定专为虚拟资产量身打造的监管框架。
在2020年7月10日发布的指南中，BVI金融服务委员会（FSC）证实，虚拟资产相关活动是否需要取得牌照的问题将根据现行金融服务立法确定。
有意在BVI成立的加密货币和虚拟资产企业，特别是拟从事的活动包括运营加密货币交易所或开展加密货币贷款的，需要考虑相应活动是否属于下列法律的管辖范畴：
• 1990年《银行与信托公司法》（BTCA），以经修订的为准；
• 2009年《金融与货币服务法》（FMSA），以经修订的为准；或
• 2010年《证券与投资业务法》（SIBA）。
跨境风险
讨论一个司法管辖区对虚拟资产的监管时，不考虑重大的跨境风险是不完整的，因为该风险是虚拟资产去中心化特点所固有的。
一个关键问题是，虽然事实上虚拟资产企业可能受到某个司法管辖区的适当监管（或不受监管），但若其服务针对境外投资者和客户，可能需要跨境注册和监管，因此可能在其他司法管辖区产生重大监管影响。
所以，如果企业也向其他司法管辖区的客户提供服务，遵守BVI等离岸司法管辖区的适用法规不会使得企业免受其他司法管辖区的监管执法行动。企业应始终获取根据此类司法管辖区法律提出的适当建议。
《银行与信托公司法》
虚拟资产企业从事法定货币买卖或代客户持有法定货币存款等活动的，应确保其活动不会无意之中构成BTCA所定义的需要相关牌照的“银行业务”。
“银行业务”是指接受和运用存款的业务，其中接受的存款可随时或在固定期限届满后或提前通知后（通过支票或其他方式）提取或偿付，而运用存款是指全部或部分用于：(1) 发放或提供贷款、预付款、透支、保证或类似金融服务；或(2) 以接受存款之人的名义，并在该人承担风险的情况下做出投资。代表客户持有并投资法定货币的企业或交易所，需要考虑BTCA的上述规定是否对其适用。
《金融与货币服务法》
FMSA规范金融业务和货币服务业务。
总体而言，金融业务与向位于BVI的借款人提供信贷有关。对虚拟资产企业影响更大的是，2019年该法对“金融业务”的定义予以扩充，在其中加入了“在点对点（P2P）金融科技市场（包括个人对企业（P2B）和企业对企业（B2B）市场）从事国际金融和贷款业务”。
货币服务业务是一个受监管的活动类别，包括但不限于任何形式的货币转移业务，该等形式包括电子货币、移动货币或货币支付。
FSC的指南确认，转移虚拟资产或虚拟资产相关产品无需取得FMSA规定的牌照。
但是，如果虚拟资产企业代表客户操作法定货币，应留意以上定义，并进行必要咨询，以确保只在持有FMSA规定的必要牌照的情况下才从事受监管的活动。
企业从事的活动若属于FMSA定义的货币服务或金融服务，需持有FMSA规定的牌照，并履行多项义务，包括客户账户隔离，向FSC提交每个财年经审计的财务报表，维持资本来源等。
《证券与投资业务法》
下列活动需要取得SIBA规定的牌照：
• 买卖、安排买卖或管理投资；
• 提供投资建议；
• 提供投资托管服务；
• 提供投资行政管理服务；以及
• 运营投资交易所。
因此，SIBA项下的一个重要问题是，企业经营的虚拟资产是否构成SIBA所指的投资。
SIBA适用于很多类别的传统投资，如股份、合伙或基金权益、信用债券、集体投资计划权益以及某些衍生品。
特定虚拟资产是否会被视为SIBA所指的投资，是一个需要判断的问题。如果虚拟资产属于SIBA所指的投资，则企业需要取得牌照方可从事与该等资产有关的上述活动。
仅用作交换媒介的虚拟资产或其他数字财产，除钱币所有权外无其他权益或权利的，不会被视为投资。FSC的指南确认，此类资产通常不属于监管范畴。
FSC的指南还确认，仅向购买者提供购买商品和服务的能力的实用型代币不属于监管范畴。
不过，如果虚拟资产提供了除交换媒介外的其他权益或权利，例如，授予对股份的权利或设立或承认债务，则该虚拟资产构成投资，因而适用SIBA。
有些虚拟资产可向持有人提供其他权益，如以下权利：(1) 对不同协议建议进行表决；(2) 有资格成为协议收入或费用的一部分；或 (3) 参加去中心化自治组织。因此，在从事涉及BVI境内虚拟资产或从BVI境内向外转移虚拟资产的活动之前，应始终进行咨询，以确定虚拟资产是否可视为SIBA所指的需要牌照方可买卖的“投资”。
结语
虚拟资产仍然是一个快速发展、激动人心的市场领域，给虚拟资产企业、投资者、律师、监管机构都带来了挑战和机遇。
尽管BVI目前并未实行专为虚拟资产打造的监管框架，有意在BVI从事虚拟资产相关业务或利用BVI实体的行业参与者，需要认真考虑拟从事的活动是否会使得这些参与者被归入BVI现行金融服务立法管辖的范畴。
