Embracing the Shift:
BVI
AND THE
DIGITAL MOVEMENT By Ayana Hull, Counsel, Harneys
In establishing itself as a leader in offshore financial services, the British Virgin Islands continues to trail blaze the path of innovation by persistently examining trends which are developing over time. It continues to introduce new financial services products to meet customer needs whilst balancing its international obligations to maintain its integrity as a world-class offshore jurisdiction. THE DIGITAL FINANCIAL SERVICES ERA The use of computer programs and other technology to support or enable financial services is now one of the fastest growing industries in the world. As online financial transactions occur more quickly, more efficiently and more cost effectively, more and more clients are readily embracing these on-line based products. Further, as cryptocurrencies and digital tokens continue their energetic movement through the world’s investment markets and as the FinTech world continues to explode, so too must the BVI keep step with developments in this space in order to attract and service clients who call upon the strong financial services community in 4
BUSINESS INSIGHT | ISSUE 02 | JULY 2018
the BVI to structure these new and innovative digital products. We discuss some of these areas below in more detail.
REGULATORY SANDBOXING Recognising the trend of financial services jurisdictions to develop regulatory frameworks for emerging business models, a plethora of technological entrepreneurs have already expressed direct interest in the BVI’s ability to allow them to test their new digital business models in the BVI by conducting live experiments, in a controlled environment which is operated under the supervision of the BVI regulator, the Financial Services Commission. Regulatory sandboxes are gaining popularity in most developed financial markets and the BVI Government is currently engaged in discussions across industries and countries to assess how a BVI regulatory sandbox can assist innovators to create more affordable products and services and to foster financial inclusion. The BVI regulator has also recently made a public statement on its commitment to helping financial services firms to innovate through regulatory and financial technology. BVI Finance, Tortola BVI VG1110 E: info@bvifinance.vg | www.bvifinance.vg
