NOTE FROM THE CEO Embracing Disruption Many of us may be unwilling to face the reality that world has changed irrevocably. COVID-19 has disrupted the way we live, work, and socialize. It has also been a catalyst to the transition to a digital-first world, with the COVID-19 era witnessing some of the highest growth rates in technological innovation. In the high-tech world, game-changing technologies have increasingly usurped or disrupted the status quo. TechTarget’s Tom Goodwin aptly observed some years ago that with the transformation something interesting was happening: “Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate.” This phenomenon is not relegated to the tech world; today it has transcended into financial markets where some of the world’s largest trades have no real or tangible value. The intrinsic value of a digital asset is ultimately determined simply by the market in which it is held. Twitter founder Jack Dorsey earlier this year became the poster child for trading in digital assets when he sold his first ever tweet, “just setting up my twttr”, as a non-fungible token for $2.9 million to a Malaysian-based businessman. Business savvy entrepreneurs, institutional investors, governments, courts, regulators, and international standard setters are all trying to decipher what this all means, and more importantly, how we can benefit from it. By being at the cutting-edge of innovation and embracing disruption, the British Virgin Islands (BVI) has always punched above its weight. The contributors in this edition of Business Insight delve into the complex world of digital disruption and decode the trends in crypto currencies, digital assets, FinTech and RegTech. In addition, we hear from well-known industry leaders on how the BVI has been able to stay ahead of the competition over many years and maintain its global standing, whilst continuing to develop and attract the highest quality international and local talent pool. In an engaging roundtable discussion hosted by Opalesque, leading practitioners share their learnings across the divide between the fiat currency system, central banks, cyrpto currencies and the types of exchanges the group sees evolving.
Christopher McKenzie examines the innovation in BVI trusts laws and Owen Prew reviews the case for a legal definition of digital assets, while Matt Freeman assesses the increasing litigation in the crypto world, and Van Setten looks at e-signatures and electronic execution. In our profile feature, Simon Filmer charts his 20-year journey and rise to the top of the financial services industry and looks at the key themes that are shaping the global industry. Simon Gray and Philip Treleavan look at FinTech, Reg Tech, AI and Big Data, while Ayana Hull examines the BVI Regulatory Sandbox and how it will spur Fintech Innovation in the BVI. Adenike Sicard reviews what you need to know about the regulation of virtual assets in the BVI, while James Drury discusses how the Crypto Curry Club is providing food for thought on the issue. Rounding out the issue, Dr. Ricardo Wheatley considers how the BVI can position itself for Asia’s post-pandemic recovery. We also hear from an esteemed panel of experts on the impact of proposed global tax reform – in essence brought about by the disruption caused by digitized companies like Google, Facebook and Amazon. The panel including Oliver Cooper, Lisa Penn-Lettsome, Geoff Cook and Mark Pragnell, discuss this and the potential impact of a proposed global corporate minimum tax rate and what this could mean for the BVI and other international finance centres (IFCs). While changes in digital assets are moving at light speed, the digital transformation is still evolving. One thing is certain is that this new digital paradigm, in varying forms, is here to stay and will be a part of the global post-COVID economic recovery and an integral component of the world’s future. Adapting to disruption is rarely easy, but the potential for significant benefits and value creation are there for those who prepare to avail themselves of the opportunities. The BVI is ready to create a best-inclass environment to allow businesses to flourish in this space.
ELISE DONOVAN Chief Executive Officer
Michael Killourhy and David Mathews guide us in future-proofing the BVI by examining the outlook for crypto currencies, tokens and digital assets. Lodewijk Van Setten then reviews digital assets and the financial services framework that underpin these in the BVI, and, elsewhere, Killourhy discusses the opportunities for Special Purpose Acquisition Companies (SPACs). As the new CEO/Managing Director of the BVI Financial Services Commission, Kenneth Baker shares the lessons he has learnt through his stellar career and outlines his plans for leading the Commission in the new global landscape. Christian Hidalgo and Simon Gray look at fund innovation and incubators in a digital world, while Bank of Asia’s Deon Vanterpool outlines the opportunities for the BVI to become a digital champion in banking and financial services.
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