Blab Crypto
Kraken Parent Payward Secures Virtual Asset Service Provider License in British Virgin Islands
Payward, the parent company of the well‑known exchange Kraken, has been granted a Virtual Asset Service Provider (VASP) license by the British Virgin Islands Financial Services Commission (BVI FSC). The approval enables Payward to offer regulated digital‑asset services to clients based in or transacting through the BVI, expanding its global licensing footprint and reinforcing the territory’s emerging reputation as a blockchain hub.
The decision follows the 2023 enactment of the VASP Act, which established a clear regulatory framework for virtual‑asset activities in the jurisdiction. The law seeks to balance innovation with oversight, positioning the BVI as an attractive domicile for crypto hedge funds, tokenization initiatives, DeFi projects, and other digital‑asset funds. Compared with the Cayman Islands, the BVI offers lower incorporation costs, a factor that has drawn firms seeking certainty without sacrificing regulatory compliance.
"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," said Elise Donovan, CEO of BVI Finance. The BVI’s Minister for Financial Services and Economic Development, Hon. Lorna Smith, OBE, echoed that sentiment, describing the approval as a "strong endorsement of the progressive balance we have achieved between fostering innovation and maintaining a robust approach to regulation." Smith noted the growing demand from firms that want to operate a blockchain‑based business in a locale that offers clear regulatory guidance.
Payward’s VASP registration is part of a broader strategy to secure licenses in key jurisdictions worldwide. The company, which operates as a unified financial infrastructure platform, already holds regulatory approvals in several other countries, allowing it to provide custody, exchange, and other digital‑asset services under local rules. Kraken, founded in 2011 and legally named Payward, Inc., is one of the largest cryptocurrency exchanges globally. It was the first crypto company to obtain a bank charter in the United States and has since expanded into tokenized equities, futures, and ETFs across most U.S. states. By 2025, Kraken reported $207 billion in quarterly trading volume and ranked the world’s fourteenth‑largest crypto exchange.
The BVI’s new regulatory regime reflects a broader trend among offshore jurisdictions that are refining their rules to attract digital‑asset firms while meeting international standards on anti‑money‑laundering and market conduct. The BVI FSC’s oversight focuses on policing the perimeter of regulated activity, reducing financial crime, and protecting the privacy of legitimate business transactions. Payward’s licensing enables it to serve clients who wish to operate within a jurisdiction with a long history of international finance and a well‑established legal framework, aligning with the territory’s strategy to become a leading domicile for crypto hedge funds and tokenization projects.
In addition to its regulatory gains, the BVI has opened an Asia representative office in Hong Kong to support business development in the Asia‑Pacific region, underscoring its commitment to attracting global financial services. The combination of a supportive regulatory environment, lower incorporation costs, and a professional ecosystem makes the BVI an attractive choice for firms looking to establish a presence in the digital‑asset space.
As Payward expands its regulatory footprint, the BVI continues to demonstrate its capacity to host sophisticated financial services while maintaining stringent oversight. The VASP registration is a milestone that underscores the BVI’s ongoing efforts to position itself as a competitive jurisdiction for digital‑asset innovation. The licensing also signals to the market that Payward is committed to compliance and transparency, reinforcing its reputation among institutional investors and retail clients alike. With the BVI’s VASP framework in place, Payward can now provide regulated custody, exchange, and other services to clients based in the territory, potentially increasing its share of the global digital‑asset market.
In summary, Payward’s approval as a VASP in the British Virgin Islands marks a significant step in the company’s global expansion strategy and highlights the BVI’s growing role as a hub for regulated digital‑asset services. The move is expected to attract additional crypto firms to the territory and strengthen the BVI’s position in the competitive landscape of offshore crypto jurisdictions.
The decision follows the 2023 enactment of the VASP Act, which established a clear regulatory framework for virtual‑asset activities in the jurisdiction. The law seeks to balance innovation with oversight, positioning the BVI as an attractive domicile for crypto hedge funds, tokenization initiatives, DeFi projects, and other digital‑asset funds. Compared with the Cayman Islands, the BVI offers lower incorporation costs, a factor that has drawn firms seeking certainty without sacrificing regulatory compliance.
"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," said Elise Donovan, CEO of BVI Finance. The BVI’s Minister for Financial Services and Economic Development, Hon. Lorna Smith, OBE, echoed that sentiment, describing the approval as a "strong endorsement of the progressive balance we have achieved between fostering innovation and maintaining a robust approach to regulation." Smith noted the growing demand from firms that want to operate a blockchain‑based business in a locale that offers clear regulatory guidance.
Payward’s VASP registration is part of a broader strategy to secure licenses in key jurisdictions worldwide. The company, which operates as a unified financial infrastructure platform, already holds regulatory approvals in several other countries, allowing it to provide custody, exchange, and other digital‑asset services under local rules. Kraken, founded in 2011 and legally named Payward, Inc., is one of the largest cryptocurrency exchanges globally. It was the first crypto company to obtain a bank charter in the United States and has since expanded into tokenized equities, futures, and ETFs across most U.S. states. By 2025, Kraken reported $207 billion in quarterly trading volume and ranked the world’s fourteenth‑largest crypto exchange.
The BVI’s new regulatory regime reflects a broader trend among offshore jurisdictions that are refining their rules to attract digital‑asset firms while meeting international standards on anti‑money‑laundering and market conduct. The BVI FSC’s oversight focuses on policing the perimeter of regulated activity, reducing financial crime, and protecting the privacy of legitimate business transactions. Payward’s licensing enables it to serve clients who wish to operate within a jurisdiction with a long history of international finance and a well‑established legal framework, aligning with the territory’s strategy to become a leading domicile for crypto hedge funds and tokenization projects.
In addition to its regulatory gains, the BVI has opened an Asia representative office in Hong Kong to support business development in the Asia‑Pacific region, underscoring its commitment to attracting global financial services. The combination of a supportive regulatory environment, lower incorporation costs, and a professional ecosystem makes the BVI an attractive choice for firms looking to establish a presence in the digital‑asset space.
As Payward expands its regulatory footprint, the BVI continues to demonstrate its capacity to host sophisticated financial services while maintaining stringent oversight. The VASP registration is a milestone that underscores the BVI’s ongoing efforts to position itself as a competitive jurisdiction for digital‑asset innovation. The licensing also signals to the market that Payward is committed to compliance and transparency, reinforcing its reputation among institutional investors and retail clients alike. With the BVI’s VASP framework in place, Payward can now provide regulated custody, exchange, and other services to clients based in the territory, potentially increasing its share of the global digital‑asset market.
In summary, Payward’s approval as a VASP in the British Virgin Islands marks a significant step in the company’s global expansion strategy and highlights the BVI’s growing role as a hub for regulated digital‑asset services. The move is expected to attract additional crypto firms to the territory and strengthen the BVI’s position in the competitive landscape of offshore crypto jurisdictions.
