Payward, parent of Kraken, secures a BVI VASP license as the jurisdiction courts crypto firms with lower setup costs and a 2023 VASP Act. BVI Finance says demand is rising.
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The parent company of crypto exchange Kraken, Payward, obtained a virtual asset service provider license from the British Virgin Islands Financial Services Commission. The approval lets Payward offer regulated digital asset services to clients operating from or through the BVI.
Kraken said the BVI is growing in importance as a jurisdiction for digital asset issuance and usage. Elise Donovan, CEO of BVI Finance, called the license a strong endorsement of the BVI as a trusted jurisdiction for digital assets. “Payward’s licensing is another strong endorsement of the BVI as a trusted jurisdiction for digital assets and further demonstrates the continued confidence that leading global firms have in our legal framework, regulatory architecture, and professional ecosystem,” Donovan said. She added that the BVI is seeing growing demand from firms looking to operate a blockchain-based business in a locale with regulatory certainty.
Lorna Smith, the BVI’s Minister for Financial Services and Economic Development, said the decision was “a strong endorsement of the progressive balance we have achieved between fostering innovation and maintaining a robust approach to regulation.”
The BVI passed its VASP Act in 2023, positioning itself as a competitive venue for crypto activity. The region has become a top domicile for crypto hedge funds, with rising interest in tokenization and decentralized finance. Setup costs are reportedly lower than in the Cayman Islands, another common offshore hub.
For Kraken, the license adds a regulated foothold in a jurisdiction actively courting crypto business, broadening its geographic coverage as regulatory frameworks tighten elsewhere. The BVI license covers the same scope of services Kraken offers in other licensed markets, including custody and exchange trading, Donovan said.
The BVI Finance CEO said demand from blockchain-based firms continues to grow, though she did not disclose how many license applications the commission has received since the VASP Act took effect.
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