BRITISH VIRGIN ISLANDS Trends and Developments Contributed by: Matthew Freeman and Stuart Rau, Maples Group
Overview The British Virgin Islands (BVI) continues to retain its status as one of the most significant jurisdictions in the international corporate service sector and, in particular, the insolvency and restructuring sector. Throughout 2024 and into 2025, the BVI has proved to be a resilient and agile jurisdiction, at the forefront of emerging insolvency and restructuring practices, including relating to real estate and crypto-assets. Trends Market analysis – FSC statistics In 2025, the BVI has remained one of the most signifi - cant international jurisdictions for company incorpora - tions. The BVI Financial Services Commission (FSC) reports that, as of 30 June 2025, 355,024 active busi - ness companies are registered within the BVI. 7,037 business companies were incorporated within Q2 2025 – a 2.52% increase compared to 2024, and a 0.95% increase compared to Q1 2025. 2,677 active limited partnerships are registered in the jurisdiction, an 8.5% increase compared to 2024. 31 insolvency practitioners are currently registered in the BVI. Insolvency During 2025, the traditional insolvency market has remained flat, and the number of court-appointed liquidators has not significantly increased. This may be due to the increasing numbers of restructurings involving BVI companies and the rise of distressed directorships. Many insolvency practitioners in the BVI now offer a distressed directorship service to assist companies in navigating through times of financial hardship, or that are put in place following the appoint - ment of receivers over the affairs of a BVI company. Insolvencies relating to crypto-asset funds and exchanges continue to dominate the BVI insolven - cy landscape in 2025, with the Three Arrows Capi - tal insolvency entering another year. The fund has made interim distributions to its creditors, but certain aggrieved parties have sought to challenge decisions of the liquidators of the fund pursuant to Section 273 of the Insolvency Act. The outcome of that application could have wide-ranging repercussions for investors of the main fund and its feeder funds, and will there- fore attract interest internationally.
In addition to Three Arrows Capital, the BVI company that was previously the main operating company of the Bybit exchange was placed into liquidation at the end of 2024, and several applications have been before the court in 2025. The exchange’s operations transferred to the Seychelles approximately five years ago, and has left purported creditors of the BVI enti - ty seeking to recover its losses from the Seychelles operating company. The exchange is one of the larg - est in the world, and the insolvency of the previous operating company represents a conflict between a small number of creditors seeking recompense from the BVI entity and its successor. The creditors seek the return of all assets held by the Seychelles entity, but dragging the exchange into an insolvent estate could have serious repercussions for the users of the exchange and the shareholders of the Seychelles company. Again, this is an example of the BVI being well equipped to deal with complex international crypto insolvencies, as it has a deep bench of legal practi - tioners, insolvency practitioners and judges that have world-leading expertise in these matters. Restructuring Restructurings in the BVI have continued their popu - larity into 2025, with the Chinese real estate market continuing to dominate this space. The Kaiser restruc - turing that was implemented in Hong Kong, the Cay - man Islands and BVI was a success story for the jurisdiction and showed, once again, that the BVI is a leading jurisdiction for cross-border restructurings. Fintech and crypto-assets The BVI has been at the forefront of developing and encouraging fintech within the jurisdiction since the launch of its innovative Regulatory Sandbox in 2021. This was followed by the passing of the Virtual Assets Service Providers Act (the “VASP Act”), which came into effect on 1 February 2023. The VASP Act requires virtual assets service providers (VASPs) that fall within the regime to register with the FSC as a VASP, under one or more categories. In March 2025, the FSC announced the establishment of a VASP Advisory Committee that formalises the membership of a core group of persons from within the private sector with
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