The British Virgin Islands are a top crypto hub no one ever talks about: Here’s why
Infrastructure
The British Virgin Islands (BVI) has emerged as a leading global jurisdiction for digital asset firms and tokenized real-world assets, hosting 305 tokenized securities according to Bernstein Research. As of June 1, BVI-incorporated entities issued approximately $1.5 billion of the $14.98 billion global market for tokenized US Treasuries, representing over 10% of the total sector. Major industry players including Kraken’s parent company Payward, Bitstamp, 1inch, and Bitfinex utilize the territory for legal incorporation, though most maintain operations elsewhere. While the BVI offers tax neutrality, industry experts emphasize that regulatory clarity, legal certainty, and the efficient VASP Act framework are the primary drivers for institutional adoption. The territory’s ability to provide flexible corporate structuring and a predictable legal environment allows it to compete effectively against hubs like Singapore and the UAE. This trend highlights a shift in the RWA market where institutional credibility and compliance-ready legal frameworks are prioritized over simple tax advantages. Ultimately, the BVI serves as a critical legal home for SPVs and treasury vehicles, facilitating the growth of the broader tokenized asset ecosystem.
Key points
- ▸BVI entities account for $1.5 billion of the $14.98 billion global tokenized Treasury market.
- ▸Bernstein Research identifies the BVI as hosting 305 tokenized securities, the highest global count.
- ▸The BVI VASP Act provides a regulatory framework with a six-month review target.
- ▸Over 25 virtual asset service providers are currently approved under the BVI VASP regime.
Background
The British Virgin Islands is a British Overseas Territory that has long functioned as a major offshore financial center due to its flexible corporate law and tax-neutral status. In the context of digital assets, it provides a legal home for Special Purpose Vehicles (SPVs) and holding companies that allow crypto firms to structure their token issuance and treasury operations within a recognized regulatory framework.
Relevance
7.5/10