When Hon. Lorna G. Smith, OBE, Junior Minister for Financial Services and Economic Development, speaks about the British Virgin Islands (BVI)’s place in the digital assets economy, she does so as both policymaker and steward of a financial system that has helped shape four decades of global financial activity.

What emerged from our discussion was a vision of where the BVI is heading, and an account of how the jurisdiction is positioning itself as a stable and agile platform for a sector that thrives on speed, yet depends fundamentally on trust.

Minister Smith began by emphasising the pillars that have defined the BVI’s role as an international financial centre: predictability, legal certainty and regulatory strength through the BVI Financial Services Commission (FSC). For more than 40 years, the jurisdiction has operated within the English common law tradition, supported by highly regarded commercial courts. The BVI FSC, equally important in her view, has a reputation for maintaining robust standards and aligning with evolving global expectations. These qualities, she noted, form the bedrock on which the jurisdiction is building its digital assets strategy.

This foundation is increasingly important as fintech firms expand across borders at unprecedented speed. Destination Digital, a research study published by BVI Finance and based on the views of 451 global fintech executives, underscores the point. It found that 94 per cent of industry leaders consider international expansion central to their growth model, and 63 per cent already rely on an international financial centre. The proportion is even higher among blockchain and tokenisation firms. For Minister Smith, these findings matched what BVI policymakers have been hearing directly from founders. Speed and innovation depend on a dependable base,

A Regulatory Framework
Minister Smith highlighted the BVI’s Virtual Asset Service Providers (VASP) Act, introduced in 2022, as one of the jurisdiction’s most important developments for the sector. It provides clarity for digital asset businesses operating under a defined regulatory perimeter, while still allowing emerging technologies the space to evolve. For a sector that often wrestles with unclear or inconsistent regimes, this measured approach is significant. The aim, she explained, is to remain agile without being arbitrary, and to encourage innovation while upholding investor and consumer protection. And firms, she noted, value jurisdictions that focus on getting regulation right at the outset.

Major industry players appear to share this view. Minister Smith pointed to BlackRock’s tokenised fund, BUIDL, which utilises BVI structures, as an example of how global institutions are embracing the jurisdiction’s legal clarity and commercial quality. Several other digital asset platforms, including both early-stage ventures and established international firms, have adopted BVI structures for similar reasons. Credibility travels, she noted, and the BVI’s framework aligns well with what global firms require.

An Expanding Ecosystem
The jurisdiction’s ecosystem-building efforts are equally important. The FinTech on the Seas conference, held by BVI Finance on Necker Island in 2025, brought together participants from 17 jurisdictions, including regulators, technologists and company founders. Attendees ranged from emerging innovators to senior executives. The event was successful enough that dates for the next conference, scheduled for 22 to 24 June 2026 have already been set.

Such gatherings matter, Minister Smith explained, because digital asset businesses typically rely on multi-jurisdictional operating models. Destination Digital illustrated this clearly. It found that 44 per cent of FinTech executives globally rely on distributed ledger technology as part of their operating model, rising to 54 per cent among early-stage firms. The BVI, she said, was well placed to support companies that build in one location and scale internationally.

She also pointed to the jurisdiction’s suitability for emerging structures such as decentralised autonomous organisations (DAOs), cross-border payments platforms and tokenised investment vehicles. This is because the VASP framework allows decentralised entities to operate within a regulated environment, meeting AML, KYC and cybersecurity requirements without undermining their technological architecture. Meanwhile, a very well-established professional services ecosystem on the BVI supports these developments.

Compliance as a Competitive Strength
Minister Smith is clear that a key part of the BVI’s appeal is its reputation for effective oversight, with compliance remaining central to the jurisdiction’s message. She referred to continued collaboration with regional and international partners, extensive industry consultation and active engagement in global compliance forums. The goal, she said, is to maintain alignment with international standards while remaining responsive to the operational needs of digital asset firms.

This focus is consistent with global sentiment. Destination Digital found that 39 per cent of fintech leaders considered regulatory change a significant business factor, while nearly a quarter identified AML and KYC friction as a top challenge. Minister Smith argued that jurisdictions capable of combining strong standards with responsive rule-making were well positioned to support firms that needed to scale across borders without becoming entangled in regulatory inconsistencies.

Resilience and Scale
If regulatory clarity and cross-border functionality are defining features today, institutional resilience is the BVI’s long-standing advantage.

Minister Smith pointed to more than 360,000 active BVI Business Companies, holding an estimated US$ 1.4 trillion in assets and supporting around 2.3 million jobs globally. To her, these figures demonstrate a system that had repeatedly shown continuity through market cycles, geopolitical developments and natural disasters.

Fintech firms, which face market volatility and rapid technological evolution, value greatly this form of stability. As the Minister noted, innovation may move quickly, but major investment decisions require certainty. The BVI’s ability to offer both is, in her view, one of its strongest attributes.

Capacity and Sustainability
Looking ahead, Minister Smith identified enhanced regulatory capacity as a priority. Digital asset business models are becoming increasingly sophisticated, and supervisory teams need to keep pace. The BVI government is committed, she explained, to strengthening institutional expertise, refining legal infrastructure and maintaining an influential role in global policy discussions. Events such as FinTech on the Seas support this by placing the BVI at the centre of international sector dialogue.

Sustainability is also rising on the agenda, with the BVI’s experience of climate-driven hurricanes in 2017 underscoring the importance of economic resilience and diversification. Minister Smith said the jurisdiction was exploring green finance tools, including green investment funds and possible green bond structures.

And with Destination Digital indicating that one-third of fintech firms globally are prioritising sustainable finance initiatives, this creates opportunities for jurisdictions like the BVI that can integrate digital innovation with environmental aims.

Why Founders are Choosing the BVI
Asked what she would say to a fintech founder considering the jurisdiction, Minister Smith returned to the core of the BVI’s offer: Innovation grounded in sound governance, privacy supported by trust, and agility anchored in the rule of law. The BVI, she concluded, is a stable, well-regulated and globally connected jurisdiction, and the confidence shown by international firms of the highest repute reflects that reality.

For a sector defined by rapid change but dependent on confidence, her message is clear. The BVI intends to be the jurisdiction where ambitious digital asset businesses can innovate at pace and grow with certainty.