BRITISH VIRGIN ISLANDS Law and Practice Contributed by: Chris Duncan and Katrina Lindsay, Carey Olsen
ance managers, insurance intermediaries, insur - ance brokers, and loss adjusters) and regula - tors as regards the BVI insurance industry is to ensure the safety, soundness and integrity of the insurance market. The FSC supervises the insurance industry fol - lowing the guidelines stipulated in the Insurance Act 2008, the Insurance Regulations 2009, and the Regulatory Code 2009. The legislation was written with consideration given to the Insurance Core Principles of the International Association of Insurance Supervisors, which is the interna - tional standard-setting body for insurance. 9. Regtech 9.1 Regulation of Regtech Providers Regtech is not a regulated business in the BVI. Where provided in relation to virtual assets under the VASP Act, there are specific exclusions that Financial service providers in the BVI will seek and expect contractual terms based on interna - tional market practice. The key provisions gener - ally relate to the protection of IP rights, personal data, and confidentiality. 10. Blockchain 10.1 Use of Blockchain in the Financial Services Industry The BVI already has a fully digital, global cross- border bank in operation. Although it is not antic - ipated that traditional players will be the drivers for the adoption of blockchain technology in the financial services industry, new players are regtech providers may benefit from. 9.2 Contractual Terms to Assure Performance and Accuracy
expected to build on Bank of Asia’s movement towards digitalisation and adopting innovative fintech solutions. 10.2 Local Regulators’ Approach to Blockchain The VASP Act is the result of extensive industry consultation and collaboration, which focused on ensuring that the VASP Act does not stifle technological innovation, while also ensuring adherence to international standards and FATF recommendations. 10.3 Classification of Blockchain Assets Under the VASP Act, a virtual asset is defined as a digital representation of value that can be digitally traded or transferred and can be used for payment or investment purposes, but does not include digital representations of fiat currencies. Accordingly, blockchain assets are likely to be treated as virtual assets under the VASP Act. Any entity providing a virtual assets service in respect of blockchain assets will likely be required to be registered as a VASP under the VASP Act. 10.4 Regulation of “Issuers” of Blockchain Assets The sole act of issuing virtual assets falls outside the scope of the VASP Act. However, in line with FATF guidance, persons who participate in – or provide related financial services to ‒ an issu - er’s offer and/or sale of virtual assets through activities such as Initial Coin Offerings (includ - ing book building, underwriting, market making, and placement agent activity) will be caught by the VASP Act and will be required to apply for registration accordingly. 10.5 Regulation of Blockchain Asset Trading Platforms See 6.1 Permissible Trading Platforms .
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